Customer Reviews

IPOs and Equity Offerings (Securities Institute Global Capital Markets)

5 star:		(1)
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I wanted to learn in detail about the process of the IPOs and secondary public offerings. This book gave me pretty much everything I wanted to know and then some. I found it to be easy to read and engaging. It was just a great, eye-opening book. It's totally up to date even though some research findings are a bit dated because things don't really change that much in the IPO world.

The book is international in scope, and should satisfy those interested in US-only, international-only, or a combination IPOs.

You will learn some things that you probably didn't even now existed. Did you know banks allocate part of their fees to stabilazation, which means they will buy shares when the market opens in case there is a downward pressure on the stock. They are allowed to stabilize the price for 30 days.

Also, did you know that the difference between IPO price and the opening price is risk premium? I always thought that IPOs rise so much on the first day BECAUSE they are so great. In fact, the reason for the rise is the opposite: it's because the company is considered risky by IPO investors and they will only pay enough for it to allow for a nice upside to compensate for their risk. That partially explained the huge run-ups in the first day of trading during the bubble. It's hard to admit that I had all this wrong.

You will learn everything about the process from company valuation, to roadshow and marketing, to the way syndicates work and the associated politics, to the fee allocation among various managers and underwriters. You will also learn about ADRs and the way international companies chose listing on various international (US-including) stock exchanges.

Overall, just a superb book for somebody who wants to completely understand the process of equity offerings. The author uses sufficient examples, but I feel that for those wanting even more detail, the author could have included more war stories and easily increased the size of the book by 50-100%. I am not sure whether that would have made it a better book, though. Right now, it's short and sweet. Easily 4.5 stars.