The Clustering of IPO Gross Spreads: International Evidence

Posted: 19 Jun 2002


Patterns of clustering in IPO gross spreads can be identified not only in the U.S., but in many other markets across the world. The evidence indicates, however, that these clustering patterns are not necessarily collusive. Clustering is widespread in many countries with low gross spreads. In fact, the amount of clustering observed is negatively related to the gross spread level of a country. Additionally, an analysis of abnormal gross spreads following Hansen (2001) indicates that few clusters contain abnormal positive surpluses.

Keywords: initial public offerings, gross spreads, clustering

JEL Classification: G24, G32

Suggested Citation

Torstila, Sami, The Clustering of IPO Gross Spreads: International Evidence. Journal of Financial and Quantitative Analysis. Available at SSRN:

Sami Torstila (Contact Author)

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
+358 40 353 8069 (Phone)

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