In the study, we choose the companys that had conducted IPOs or SEOs between 2005 and February 2006 as studying samples. The purpose of the study is to investigate how the issuing firms choose among different underwriting mechanisms and the factors influencing the choice of underwriting mechanisms. Empirical result shows that issuing factors are the important factors that influence the choice of underwriting mechanisms. The firms that conduct IPOs usually trend to choose bookbuilding method, but the firms that conduct SEOs trend to choose fixed price method instead. On the other hand, we also find that issuing scale is another significant factor influencing the choice of underwriting mechanisms and the effect is more apparent on the firms that conduct SEOs. The firms with bigger issuing scale trend to choose bookbuilding method but the firms with smaller issuing scale trend to choose fixed price rather than bookbuilding method.

Bachelor-Arbeit Univ. St. Gallen, 2008.

This thesis comprehensively studies three questions. First of all, I use a unique set of institutional investor bids to examine the impact of personal experience on the behavior of institutional investors in an IPO market. I find that, when deciding to participate in future IPOs, institutions take into account initial returns of past IPOs in which they submitted bids more than IPOs which they merely observed. In addition, initial returns from past IPOs in which institutions’ bids were qualified for share allocation were given more consideration than IPOs for which unqualified bids were submitted. This phenomenon is consistent with reinforcement learning. I also find that institutions do not distinguish the returns that are derived from random events. Furthermore, institutions become more aggressive bidders after experiencing high returns in recent IPOs, conditional on personal participation or being qualified for share allocation in those IPOs. This bidding behavior provides additional evidence of reinforcement learning in IPO markets. Secondly, I merge the dataset of institutional investor bids with post-IPO institutional holdings data to examine whether institutional investors such as fund companies reveal their true valuations through bids in a unique quasi-bookbuilding IPO mechanism. I find that fund companies do truthfully disclose their private information via bids, despite these being without guaranteed compensation. My results contribute to the existing literature by providing new evidence on the information compensation theory and have implications for the IPO mechanism design. Finally, I explore the impact on firm valuation of going public abroad using a sample of 136 Chinese firms that conducted IPOs in the US during the period of 1999-2012. I find that US-listed Chinese firms have higher price multiples and experience less underpricing than their domestic-listed peers. The valuation premium stays consistent when a firm’s characteristics and listing cost are being controlled. These findings are consistent with the theories of foreign listing. Moreover, I find that high-tech Chinese firms with a high growth rate but low profitability are more likely to issue shares in the US, particularly for specific industries such as semiconductors, software and online business services. This industry clustering is interpreted as an incentive to access foreign expertise through listing abroad.

Since London Stock Exchange introduced bookbuilding in IPO in 1992, more and more countries also allowed companies to go IPO through bookbuilding or bookbuilding hybrid with other IPO mechanism. About 90% of the countries in the world allow bookbuilding, and it has formed a potential trend. There were about 60% of IPOs using bookbuilding in LSE, and almost 90% of the investors in the market were institutional investors. Under the main board is Alternative Investment Market (AIM) without any listing criteria, companies are qualified for listing just by designating a nominated advisor (NOMAD), and about 40%-50% of the investors on AIM are institutional investors. The growth of AIM were so amazing in recent years, especially, the number of IPOs has maintained above 150 issues per year during past five years, and 90% of them were through bookbuiling. The main purpose of this study is to figure out why companies tend to use bookbuilding. From the evidence of LSE, we found that the smaller company or issue is, the more possible that they would choose bookbuilding. When the market is less liquid, bookbuilding would likely be used, and stocks that sold through bookbuilding are usually less liquid. Companies listed on AIM are usually small and mediun ones, and choosing bookbuiling sometimes signals a good sign about the quality of a company for getting through with the examination from institutional investors. In addition, companies can designated a NOMAD as an underwriter, too. From the view point of maximizing underwriting profit and maintaining the relationship with institutional clients, the underwriter would also tend to use bookbuilding. Besides, we proposed that after-market cumulative abnormal return would be one of the reasons that company chooses bookbuilding, and we found evidence showing after-market cumulative abnormal return under bookbuilding is higher than under offer for subscription.

Bachelor-Arbeit Univ. St. Gallen, 2005.

美國初級市場採用詢價圈購做為訂價與配售方式已趨成熟，而非美國地區也有八成採用詢價圈購。在過去幾年中，我國IPO案件仍以全面公開申購作為主要承銷方式，近年主管機關透過制度改革與承銷應與國際接軌聲浪中，我國IPO市場已出現詢價圈購取代全面公開申購之趨勢。為了解詢價圈購的定價效率性，本文以94年承銷改制後採用詢價圈購為訂價方式的初次上市(櫃)公司為例，探討IPO承銷價格的決定因素以及IPO的折價幅度。結果發現承銷商商譽、初始價格區間幅度以及定價日前一個月的興櫃市場價格與IPO價格調整具有顯著關聯，掛牌前一日的興櫃成交均價、掛牌前一個月的大盤與同產業報酬率則與IPO期初報酬率具有顯著正向關連，而掛牌前一日興櫃交易成交均價應可預測掛牌日之收盤價。 / Bookbuilding has traditionally dominated the primary market in terms of pricing and allocation in the US as well as in the worldwide.While in Taiwan, open offer is the major IPO underwriting method. After several rounds of reformation, bookbuilding has gradually replaced open offer.To examine the efficiency of bookbuilding, we study how underwriters set their offering prices, and the consequent initial returns. We find that underwriter reputation, initial price range, and OTC price are related to the range of price adjustment, while the lagged market return, the lagged industry return and the OTC price of the IPO issue preceeding the offer date are positively related to initial return.

詢價圈購理論提出承銷商可藉由詢價圈購的過程，誘使投資人藉由圈購的價量提供私有資訊，進而提升價格發現的效果。國外實證研究亦發現承銷商在訂價時廣泛使用詢價圈購過程所獲得的資訊，並會依據投資人對IPO股票的需求調整承銷價格。 　　本研究針對民國93年5月初至民國96年5月底，共計66個普通股初次上市（櫃）案件進行實證研究，以探討詢價圈購資訊內涵對於發行價格之影響，並觀察詢價圈購資訊與IPO後股價報酬率之間的關連性。 　　經由實證結果發現我國承銷商在訂價時會參考加權平均圈購價格與圈購價格集中度所提供的資訊，而超額認購是較為次要的參考依據。相較於國外投資銀行，我國承銷商在訂價時並未大幅參考投資人圈購時所提供之資訊。承銷商在訂定發行價格時較為重視圈購數量較多的投資人所提供之資訊，並且機構投資人對承銷商而言具有較高的資訊內涵價值。超額認購是所有詢價圈購資訊中，對於IPO後股票報酬率最有預測能力的變數，代表我國承銷商在訂價時並未完全將超額認購所提供的資訊反映至發行價格上。 / Under bookbuilding process, underwriters can use relevant information from investors to price the issue more accurately. Previous studies also found that underwriters extensively use the information contained in the book and partially adjusted issue price to private information collected during the IPO process. The purpose of this paper is to examine whether underwriters use the information content of investors’ bids in IPOs when setting the issue price and to investigate whether this information can predict aftermarket returns. This paper analyzes 66 IPO issues between early 2004 and late 2007. The results suggest that weighted average limit price and the concentration of limit price are related to the issue price, and the level of oversubscription is minor factor to price setting. In addition, large bidders and institutional investors’ bids have information advantage and can provide helpful information to underwriters. Moreover, Oversubscription can predict aftermarket returns, suggesting that underwriters might not use all the information available when setting the issue price.

Made available in DSpace on 2010-04-20T20:51:07Z (GMT). No. of bitstreams: 0 Previous issue date: 2003-03-11T00:00:00Z / A dissertação analisa a utilização do bookbuilding como redutor do deságio no preço das emissões dos IPOs brasileiros. A literatura internacional sobre bookbuilding é apresentada e, no caso brasileiro, exemplos de emissões são discutidas, particularmente no que se refere à alocação das ações entre os investidores. Favorecimento na alocação parece ocorrer para os maiores investidores, para os Fundos de Pensão e para os que fazem suas ofertas diretamente ao bookrunner. A análise de uma amostra de IPOs brasileiros, precificados por bookbuilding, revelou que o retorno médio ajustado ao mercado é de 2,46%, no final do primeiro dia de negociação na Bolsa de Valores. O resultado confirma que o bookbuilding é um poderoso instrumento de redução de underpricing. Após 135 dias úteis a amostra apresentou retorno médio de -77,29%.

Ce travail de thèse consiste en trois essais. Ces essais sont largement indépendants, mais partagent une motivation commune: l'explication du comportement des titres émis sur les marchés d'actions, à court terme et à long terme. La littérature académique a mis en évidence un paradoxe: les titres émis semblent afficher des performances à court terme positives, et des performances boursières à long terme (de trois à cinq ans) médiocres. Le premier de ces essais porte sur la rentabilité des titres émis à court terme. On tente dans un premier temps de déterminer les variables qui influencent cette rentabilité. En utilisant un échantillon d'émissions réalisées entre 1992 et 1998 sur les marchés d'actions français, on montre que la variable qui al' impact le plus élevé sur cette rentabilité à court terme est une mesure des conditions de marché observées au moment de l'émission. Dans une deuxième partie, on étend l'analyse à la comparaison de l'efficience informationnelle des procédures d'introduction en bourse. On montre que la procédure de Placement Garanti, comparable au book-building américain, conduit à des niveaux de rentabilité initiale plus élevés qu'une procédure d'enchère, l'Offre à Prix Minimal, en particulier lorsque les conditions de marché sont très favorables. Ce résultat contredit la théorie de Benveniste et Spindt (1989), selon laquelle la procédure de book-building permet d'extraire l'information relative à la valeur des titres émis, grâce à la flexibilité qu'elle offre à l'intermédiaire en termes de choix du prix d'émission et d'allocation des titres. Malgré ses apparentes insuffisances, la procédure de book-building s'est imposée ces dernières années sur la plupart des principaux marchés d'actions. Le deuxième essai s'interroge donc sur l'attrait de cette procédure pour les acteurs essentiels des introductions en bourse: émetteurs, intermédiaires financiers et investisseurs institutionnels. On propose un modèle proche de celui de Benveniste et Spindt (1989), auquel on ajoute une hypothèse comportementale de conditions de marché. Dans le cadre proposé, le mécanisme d'extraction d'information proposé par Benveniste et Spindt (1989) est utile uniquement dans les conditions de marché défavorables, dans lesquelles le placement des titres est une tâche délicate. Au contraire, lorsque le marché est favorable, l'optimisme des investisseurs permet de choisir un prix d'émission élevé (par rapport à la valeur intrinsèque des titres) et garantit un placement aisé des titres. Ce modèle réconcilie également deux observations apparemment contradictoires: la rentabilité initiale positive des titres émis à court terme, et leurs mauvaises performances boursières à long terme. Des hypothèses dérivées du modèle proposé sont validées en utilisant un échantillon d'introductions en bourse récentes. Le troisième essai porte sur la deuxième partie du paradoxe évoqué précédemment: les performances à long terme décevantes des titres émis. Dans un premier temps, nous calculons les performances boursières d'un échantillon de 243 introductions en bourse sur une période de 36 mois suivant l'émission des titres, en utilisant plusieurs méthodologies. Les résultats obtenus ne nous permettent pas de conclure à une performance anormale des titres émis. Dans un second temps, nous analysons l'impact des caractéristiques de l'émission sur la performance boursière. Aucune des variables prises en. compte n'explique de façon significative la performance sur l'ensemble de l'horizon considéré. Ceci suggère que les prix d'émission choisis incorporent correctement en moyenne l'information connue au moment de l'introduction en bourse. En revanche, certaines anomalies sont mises à jour. Certaines sont connues. D'autres, comme la sous-performance des émissions réalisées par des firmes financées par des sociétés de capital-risque, sont en contradiction avec les résultats antérieurs.

My thesis deals with analyses of returns of IPO’s in the Czech capital market. The theoretical section of the thesis contains of circumscription of main terms and methodics for preparations and realizations of IPO. In the analytical section these theoretical findings are applied. This thesis should bring realistic view of returns of IPO’s for investors and evaluate present trends on IPO market.