The underpricing of Brazilian IPOs and the adjustment to public and private information
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...
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2013 |
| País: | Brasil |
| Institución: | Fundação Getulio Vargas (FGV) |
| Repositorio: | Revista Brasileira de Economia (Online) |
| Idioma: | portugués inglés |
| OAI Identifier: | oai:ojs.periodicos.fgv.br:article/3851 |
| Acceso en línea: | https://periodicos.fgv.br/rbe/article/view/3851 |
| Access Level: | acceso abierto |
| Palabra clave: | IPO Underpricing Partial adjustment Book-building. |
| Sumario: | 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. |
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