Title: Structuring the IPO: Empirical evidence on the primary and secondary portion
Authors: Huyghebaert, Nancy
Van Hulle, Cynthia
Issue Date: 2003
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 0305 pages:1-46
Abstract: We empirically study the determinants of the size of the primary and secondary portion in IPOs. Simultaneously, the results provide additional information on the motives for going public. The data show that financing needs underlie the primary portion. Firms use combined offerings to enhance market liquidity, whereby information gathering by institutional investors is stimulated. Pre-allocation and post-IPO data on market liquidity and seasoned equity offerings support these findings. Somewhat surprisingly, the diversification motive does not seem to drive the size of the secondary portion; however, secondary offerings show relatively higher control turnover post-IPO.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Finance, Leuven

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