The underpricing of Brazilian IPOs and the adjustment to public and private information

Revista Brasileira de Economia

Ricardo R.g. Avelino¹ 

[1] ,Universidade de São Paulo Department of Economics

关键词: IPO;    Underpricing;    Partial Adjustment;    Book-Building;   

DOI  :  10.1590/S0034-71402013000100001

来源: SciELO

【 摘 要 】

This paper examines the underwriters' treatment of information throughout the IPO pricing process based on a sample of Brazilian companies that went public between 2004 and 2011. There is evidence that the offer price partially incorporates the information contained into the Bovespa index during the book-building period, reacting symmetrically to upward and downward movements. The first-day return, as a result, is predictable on the basis of this information. Positive private information disclosed during the book-building period is also partially incorporated into the offer price. Issues priced above the midpoint of the initial price range are associated with higher initial returns.

【 授权许可】

CC BY   
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