IPOs seem to gather a lot of excitement. They seem to provide a new place for money to go. I read recently institutional investors are said to be the true driver of (IPOs) stock prices, typically receiving 70 - 80% of IPOs stock allocation (Ernst and Young, 2010).
Conversely,
"A wide range of financial sponsors are pursuing IPOs for their portfolio companies as a component of their ultimate exit strategy for these companies. We anticipate the pipeline of private equity-backed IPOs to remain robust for so long as broader market strength and stability continues to afford access and support attractive valuations,"
What's your take on IPOs?
IPOs Primer:
Factors-affecting-Initial-Public-Offering-performanceInteresting 2011 Duke Graduate Research paper:
IPO Timing DeterminantsInvesting in IPO etfs (IPO)
Comments