Has the introduction of bookbuilding increased the efficiency of international IPOs

摘要: By 1999, close to 80% of non-U.S. IPOs were marketed using bookbuilding methods. We study whether the recent introduction this technology by U.S. banks and their inclusion in IPO syndicates has promoted efficiency primary equity markets. analyze both direct indirect costs (associated with underpricing) a unique dataset containing information on 2,051 initial public offerings 61 markets during period 1992-1999. The are typically twice as large for fixed-price offers. However, leads substantially less underpricing. This benefit is more pronounced when target market includes investors, listing sought part syndicate.