Abstract
The tender, or auction, method achieved substantially lower underpricing than the traditional fixed-price offer for firms going public on the London Stock Exchange between 1946 and 1986. Yet, relatively few firms adopted this more efficient method. Employing a new IPO data set, I estimate that this reluctance to adopt tenders imposed a material cost upon issuing firms of up to £4 billion in real proceeds forgone, excluding privatisations. This missed opportunity is attributable to a lack of competition in IPO underwriting in the period before Big Bang.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
