Review of Finance 2026

High-end IPO prices

Clemens Mueller¹; Patrick Verwijmeren^1,2

¹ Erasmus School of Economics, Erasmus University Rotterdam , Rotterdam, · ² University of Melbourne, Melbourne, Australia

Abstract

Many initial public offerings (IPOs) are priced at exactly the high-end of the pricing range. Investing in IPOs priced at the high-end leads to first-day returns that are substantially higher than investing in IPOs that are priced just below or above the high-end. We argue that these results are in line with issuing firms settling for positively perceived salient pricing points in negotiations with underwriters.

DOI

10.1093/rof/rfag016

Language

en

Sources

crossref openalex

Cite

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