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Offer Price and Post-IPO Ownership Structure
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Faculty of Business, Kristianstad University, Elmetorpsv. 15, 291 88 Kristianstad, Sweden.ORCID iD: 0000-0002-6418-326X
2024 (English)In: Journal of Risk and Financial Management, E-ISSN 1911-8074, Vol. 17, no 2, p. 61-61Article in journal (Refereed) Published
Abstract [en]

In an initial public offering (IPO) the firm can set the offer price of its shares, based on the valuation of the firm, by changing the number of shares. This study uses stock ownership records and hand-collected IPO data to analyze the offer prices, the underpricing of IPO shares (measured as the initial return, IR) and the relationship with the post-IPO ownership structure. Specifically, the paper focuses on individual IPO investors. The results show that for the lowest priced IPOs the IR is significantly higher priced IPOs. Furthermore, for the low-priced IPOs, there is a negative relationship between offer price and breadth of ownership. This implies that stocks with a low price can attract more investors than stocks with higher offer prices. However, for high-priced IPOs the relationship is positive, suggesting that also the IPOs with highest price attract more investors. Overall, this study shows that the offer price of an IPO firm may have a moderate effect on its post-IPO ownership structure.

Place, publisher, year, edition, pages
MDPI, 2024. Vol. 17, no 2, p. 61-61
Keywords [en]
finance, IPO, ownership structure, offer price
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-522801DOI: 10.3390/jrfm17020061OAI: oai:DiVA.org:uu-522801DiVA, id: diva2:1836492
Funder
The Royal Swedish Academy of Letters, History and Antiquities (KVHAA)Available from: 2024-02-09 Created: 2024-02-09 Last updated: 2024-06-18Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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