|
||||
|
||||
On the Uniformity of Investment Banking Spreads: The Seven Percent Solution is Not Unique
Alexander W. Butler Rice University - Jesse H. Jones Graduate School of Management Pinghsun Huang National Cheng Kung University June 12, 2002 Abstract: We investigate investment bank gross spreads for Hong Kong IPOs during 1991-2000 and find pronounced clustering - nearly 94 percent have spreads of exactly 2.5 percent. This clustering is invariant to issue size and decreases through time. We find that SEO spreads cluster as well - at 2.0 percent and at 2.5 percent. We document institutional features that contribute to the low level of spreads, and provide preliminary evidence that the recent arrival of the book-building process for Hong Kong IPOs has increased the level and decreased the clustering of IPO gross spreads.
Keywords: Initial public offerings, seasoned equity offerings, gross spreads, Hong Kong JEL Classifications: G24, L10 Working Paper SeriesDate posted: July 26, 2002 ; Last revised: September 13, 2002Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2009 Social Science Electronic Publishing, Inc. All Rights Reserved. Terms of Use Privacy Policy
This page was served by apollo2 in 0.344 seconds.