A Survey of the European IPO Market. CEPS ECMI Research Reports No. 2, 18 August 2006

摘要: Based on a sample of 15 European countries, this survey analyses various features the IPO (Initial Public Offering) market over period from 1995 to 2004: listing requirements, IPO-mechanism choices, performance and secondary liquidity. First, comparison national primary regulations, in spite commonly observed segmentation between Main, Parallel New Markets, shows wide diversity requirements reveals that market’s mechanisms are almost always monitored by investment banks, which then control initial pricing allocation new issues. The examination issuers’ practices looks at increase different types late nineties widespread use book-building mechanism nowadays. Second, our empirical analysis short-term long-term confirms, with few exceptions, widely recognised patterns, but also show discrepancies periods, sector mechanisms. average underpricing amounts 22% pan-European is levels each countries sample. Empirical evidence less clear. Results not benchmark-dependent sometimes differ one measurement method another. However, line previous studies, significant underperformance found 3-year horizon all methodologies except Greece Portugal. Finally, using IPOs launched Euronext 2004, study examines relationship returns post-listing liquidity short long-run. We support ‘illiquidity-compensation hypothesis’. Initial positively linked information asymmetry after-market. It produces higher turnover immediately after has no effect trading volumes first year trading, so cannot be put down ownership structure more likely attributable interest underpriced stocks generate.