Skip to Main Content
Handbook of Empirical Corporate Finance SET
book

Handbook of Empirical Corporate Finance SET

by Bjørn Espen Eckbo
December 2008
Intermediate to advanced content levelIntermediate to advanced
520 pages
43h 42m
English
North Holland
Content preview from Handbook of Empirical Corporate Finance SET

4.9 Auction aspects of initial public offerings (IPOs)

In the summer of 2004, the internet search firm Google completed the world’s largest initial public offering to be conducted via an auction procedure. Google sold 19.6 million shares at an offering price of $85 each, for a total of $1.67 billion raised. The auction method used was a variant of the Wall Street Dutch auction, covered immediately above. Initial public offerings of equity shares would seem to be excellent candidates for an auction procedure: multiple units of the same item for sale, with uncertainty over value and ability of a seller to commit to a sales method.

Interestingly, however, the evidence suggests that formal auctions are not favored as a sales mechanism. Instead, the ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Handbook of Empirical Corporate Finance

Handbook of Empirical Corporate Finance

B. Espen Eckbo
Corporate Finance, 4th Edition

Corporate Finance, 4th Edition

Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi
Handbook of Economic Forecasting

Handbook of Economic Forecasting

Graham Elliott, Allan Timmermann

Publisher Resources

ISBN: 9780444532657