During hot IPO
markets, such as the biotechnology bubble of 1999-2000, huge amounts of money was left on the table.
retail investors receiving hot IPO
shares, it would allow some to
NEW YORK -- Hotel chain La Quinta rose Wednesday in its first day of trade after Blackstone Group successfully launched its third hotel stock offering since November into a hot IPO
GrubHub is one of four companies to go public Friday in what has been a very hot IPO
market, especially for businesses in the cloud software and biotech industries.
Prior literature finds that hot IPO
market issuers are of the same or lower quality than cold IPO market issuers (Ritter, 1991; Helwege and Liang, 2004).
I should disclose that I plan to invest in this company - not necessarily because I think that it will be the next hot IPO
, but because I think that it exploits some interesting and accelerating trends.
Investors are less likely to truthfully reveal their demand for a hot IPO
if this indication is only likely to push up the offer price.
Therefore, our study provides evidence of the effectiveness of Rule 2720 in both cold and hot IPO
In a hot IPO
, the book of orders will surpass the actual shares to be sold by many multiples.
2) In this market, the competition to get an allocation of shares in a hot IPO
was fierce owing in no small part to the widely held perception that IPOs--especially of Internet-related issuers--would yield tremendous profits to any buyer lucky enough to get the opportunity to purchase hot IPO
shares from the underwriters.