“Harvesting” through Initial Public Offerings (IPOs): The Implications of Underpricing for the Small Firm
研究了小企业在场外资本市场中，纯首次发行与混合发行的抑价水平差异，并分析了发行类型对企业和出售股东及新投资者的影响。
The existence of the phenomenon of “underpricing” has been well established for common stock initial public offerings (CSIPOs). However, the extent of underpricing varies from firm to firm. An examination of the prospectuses of different firms reveals that the motivation for going public varies, and that there are three types of offerings: pure primary offerings; pure secondary offerings; and mixed offerings. This study compares the average level of underpricing for pure primary offerings with that of mixed offerings for small firms in the over-the counter (OTC) capital market. The results of the study suggest that there are Implications of the type of offering for both the firm and the selling “harvesting” shareholders as well as the incoming investors.