IPO pricingUnderpricingIn contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that theJiao, YawenKutsuna, KenjiSmith, Richard L.Social Science Electronic Publishing...
In contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that issuers benefit in several ways. We estimate that OAO provisions lead to lower total issue cost, less negative post-IPO performance, lower pos...
by getting into the NII category you can get proportionate allotment if you manage to apply for more lots than the over-subscription in the IPO. But this is risky game. To make money with such borrowed bids, you will need to cover your borrowing cost...
IPO pricingUnderpricingIn contrast to prior studies suggesting that overallotment option (OAO) provisions reflect underwriters' exploitation of IPO firms, we provide evidence that issuers benefit in several ways. We estimate that OAO provisions lead to lower total issue cost, less negative post-IPO ...