BOOK-BUILDING VS OPEN OR AUCTION IPOS: DO FIRM CHARACTERISTICS DRIVE THE CHOICE? AN EMPIRICAL ANALYSIS USING U.S. DATA

Eugenie Ardoin
Arturo Rodriguez
Melissa V. Melancon
University of Louisiana at Monroe
ABSTRACT
This study explores the factors that impact the decision by large, well-known firms or
firms with a high percentage of equity raised in the initial stock issue to choose an auction Initial
Public Offering over a book-building offering. The researchers extend previous studies by adding
several more years of data and comparing the findings with those of such previous studies to
establish if changes have occurred in the firms’ preference towards the two different types of
offerings.