The underpricing of Brazilian IPOs and the adjustment to public and private information

Bibliographic Details
Main Author: Avelino, Ricardo
Publication Date: 2013
Format: Article
Language: por
eng
Source: Revista Brasileira de Economia (Online)
Download full: https://periodicos.fgv.br/rbe/article/view/3851
Summary: This paper examines the underwriters’ treatment of information throughout the IPO pricing process based on a sample of Brazilian companies that went public between 2004 and 2011. There is evidence that the offer price partially incorporates the information contained into the Bovespa index during the book-building period, reacting symmetrically to upward and downward movements. The first-day return, as a result, is predictable on the basis of this information. Positive private information disclosed during the book-building period is also partially incorporated into the offer price. Issues priced above the midpoint of the initial price range are associated with higher initial returns.
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spelling The underpricing of Brazilian IPOs and the adjustment to public and private informationThe underpricing of Brazilian IPOs and the adjustment to public and private informationIPOUnderpricingPartial adjustmentBook-building.IPOUnderpricingPartial adjustmentBook-building.This paper examines the underwriters’ treatment of information throughout the IPO pricing process based on a sample of Brazilian companies that went public between 2004 and 2011. There is evidence that the offer price partially incorporates the information contained into the Bovespa index during the book-building period, reacting symmetrically to upward and downward movements. The first-day return, as a result, is predictable on the basis of this information. Positive private information disclosed during the book-building period is also partially incorporated into the offer price. Issues priced above the midpoint of the initial price range are associated with higher initial returns.Este artigo examina o tratamento da informação pelo coordenador líder durante o processo de apreçamento do IPO baseado em uma amostra de firmas brasileiras que abriram o capital entre 2004 e 2011. O preço de oferta incorpora parcialmente a informação contida no Ibovespa durante o período de book-building, reagindo simetricamente a movimentos de alta e baixa. O retorno inicial, como resultado, pode ser previsto com base nesta informação. Informação privada positiva revelada durante o período de book-building também é parcialmente incorporada no preço de oferta. Ofertas com preço acima do ponto médio do intervalo inicialmente estabelecido produzem maiores retornos iniciais.EGV EPGE2013-04-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/3851Revista Brasileira de Economia; Vol. 67 No. 1 (2013): Jan-Mar; 3-23Revista Brasileira de Economia; v. 67 n. 1 (2013): Jan-Mar; 3-231806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVporenghttps://periodicos.fgv.br/rbe/article/view/3851/4529https://periodicos.fgv.br/rbe/article/view/3851/6320Avelino, Ricardoinfo:eu-repo/semantics/openAccess2016-12-16T12:26:14Zoai:ojs.periodicos.fgv.br:article/3851Revistahttps://periodicos.fgv.br/rbe/PRIhttps://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2016-12-16T12:26:14Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv The underpricing of Brazilian IPOs and the adjustment to public and private information
The underpricing of Brazilian IPOs and the adjustment to public and private information
title The underpricing of Brazilian IPOs and the adjustment to public and private information
spellingShingle The underpricing of Brazilian IPOs and the adjustment to public and private information
Avelino, Ricardo
IPO
Underpricing
Partial adjustment
Book-building.
IPO
Underpricing
Partial adjustment
Book-building.
title_short The underpricing of Brazilian IPOs and the adjustment to public and private information
title_full The underpricing of Brazilian IPOs and the adjustment to public and private information
title_fullStr The underpricing of Brazilian IPOs and the adjustment to public and private information
title_full_unstemmed The underpricing of Brazilian IPOs and the adjustment to public and private information
title_sort The underpricing of Brazilian IPOs and the adjustment to public and private information
author Avelino, Ricardo
author_facet Avelino, Ricardo
author_role author
dc.contributor.author.fl_str_mv Avelino, Ricardo
dc.subject.por.fl_str_mv IPO
Underpricing
Partial adjustment
Book-building.
IPO
Underpricing
Partial adjustment
Book-building.
topic IPO
Underpricing
Partial adjustment
Book-building.
IPO
Underpricing
Partial adjustment
Book-building.
description This paper examines the underwriters’ treatment of information throughout the IPO pricing process based on a sample of Brazilian companies that went public between 2004 and 2011. There is evidence that the offer price partially incorporates the information contained into the Bovespa index during the book-building period, reacting symmetrically to upward and downward movements. The first-day return, as a result, is predictable on the basis of this information. Positive private information disclosed during the book-building period is also partially incorporated into the offer price. Issues priced above the midpoint of the initial price range are associated with higher initial returns.
publishDate 2013
dc.date.none.fl_str_mv 2013-04-02
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/3851
url https://periodicos.fgv.br/rbe/article/view/3851
dc.language.iso.fl_str_mv por
eng
language por
eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/3851/4529
https://periodicos.fgv.br/rbe/article/view/3851/6320
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 67 No. 1 (2013): Jan-Mar; 3-23
Revista Brasileira de Economia; v. 67 n. 1 (2013): Jan-Mar; 3-23
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
_version_ 1830204549411897344

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