The Performance of Leveraged Buyout-Backed Initial Public Offerings in the UK

2008 ◽  
Author(s):  
Christian von Drathen ◽  
Flaviano Flaviano Faleiro
Keyword(s):  
Initial Public Offerings ◽  
Leveraged Buyout ◽  
Public Offerings ◽  
The Uk

Initial public offerings: evidence from the UK

2004 ◽  
Vol 30 (1) ◽  
pp. 46-62 ◽  
Author(s):  
Ashley Burrowes ◽  
Kevin Jones
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Due Diligence ◽  
London Stock Exchange ◽  
Public Offerings ◽  
The Us ◽  
The Uk ◽  
High Level ◽  
Alternative Investment

This investigation into the performance of Initial Public Offerings on the new Alternative Investment Market reveals that the expected high level of underpricing, that is usually associated with the risky nature of small, young and growing companies, is not supported by the evidence in this study. Raw and market adjusted figures reveal that IPOs listed on AIM at the London Stock Exchange appear to be only conservatively mispriced when contrasted to main board IPO listings in the US, UK and other countries. Due diligence listing requirements could be offsetting the otherwise risky nature of these small, young and growing companies. Finally AIM is discussed in terms of meeting its own targets and its ability to attract international listings.

UK FCA adopts changes to rules governing availability of information for IPOs

2018 ◽  
Vol 19 (2) ◽  
pp. 24-30
Author(s):  
Mark S. Bergman ◽  
John J. Satory ◽  
Sofia D. Martos
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Public Offerings ◽  
New Process ◽  
Practical Guidance ◽  
The Uk ◽  
Public Offering

Purpose This paper aims to summarize new disclosure and procedural rules and related guidance for initial public offerings in the UK that will become effective on July 1, 2018. Design/methodology/approach This study summarizes new disclosure and procedural rules and related guidance published by the Financial Conduct Authority intended to improve the quality and timeliness of key information made available to investors in advance of an initial public offering (IPO) in the UK, in particular the timing of the publication of IPO research by connected and unconnected analysts. Findings While it remains to be determined whether the new process will provide investors with more time to digest information about the issuer and its business and increase the likelihood that investors will place greater emphasis on the prospectus and less on research reports of connected analysts, at the very least, the publication of the prospectus or a registration document, rather than the intention to float announcement as is currently the case, will provide the first public confirmation that an IPO is imminent. Originality/value This study provides practical guidance from experienced securities and financial services lawyers.

scholarly journals Reverse LBO Underpricing: Information Asymmetry Or Price Support?

2011 ◽  
Vol 13 (3) ◽  
pp. 67 ◽  
Author(s):  
Gregory Noronha ◽  
Kenneth Yung
Keyword(s):  
Information Asymmetry ◽  
Initial Public Offerings ◽  
Price Support ◽  
Publicly Traded ◽  
Going Public ◽  
Leveraged Buyout ◽  
Public Offerings ◽  
Ex Ante ◽  
First Time ◽  
Equity Securities

<span>Most studies attribute the underpricing of initial public offerings of equity securities to the ex ante uncertainty resulting from the information differential between the firm going public and the market. Rund (1991, 1993), however, proposes that underpricing could result from underwriter price support in the early after-market. In this paper we examine firms that were once public, went private via leveraged buyout and then went public again. It is reasonable to expect that since these reverse LBOs (RLBOs) were once publicly traded, they should have less of an information differential with the market than firms going public for the first time. Our tests indicate that there is little or no information asymmetry between RLBOs and the market. We find that RLBO initial returns are more consistent with price support than with information asymmetry.</span>

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