The mechanics and performance of IPOs

By Arif Khurshed

A fully revised and updated second edition of the essential guide that tells you everything you want to know about IPOs in the UK.

An initial public offering (IPO) – the occasion when a firm’s shares are issued to the public for the first time – is one of the most exciting events in the life of a company, providing new opportunities for the business, its managers and for investors. IPOs attract a lot of attention from stock market researchers, academics and investors seeking to understand more about how they work and how the shares of IPO companies perform once they are listed.

In this second edition of Initial Public Offerings, Arif Khurshed delves into the history of IPOs on the London Stock Exchange, explains the mechanics of how IPOs are arranged and how they are priced, and provides an analysis – with detailed but lucid reference to past academic studies – of how the shares of IPO companies perform in the short and long term.

The book provides valuable insight into many fundamental IPO matters, including:

– the different methods of flotation that are used,
– the alternative ways in which IPO shares are priced,
– how common it is for IPO shares to over or underperform,
– the survival of IPO firms once they are listed.

There are also detailed case studies of the short- and long-run performance of a number of high-profile IPOs, including those of Facebook, Alibaba and Royal Mail.

If you are an academic, finance professional or serious investor looking to broaden your knowledge of stock market flotations then you will find Initial Public Offerings to be an indispensable guide.

Arif Khurshed completed his PhD from ICMA Centre, University of Reading in 1999 and joined Manchester Business School (MBS), University of Manchester, as a post-doctoral research associate. Presently he is a senior lecturer in the Division of Accounting & Finance, MBS. Arif has taught corporate finance for more than 10 years and has been an active researcher in the field of initial public offerings (IPOs), institutional investments, and corporate governance. He has published his research in several finance journals and has contributed many book chapters. His research has been covered by the Investors Chronicle, the UK press (The Times) and the Thai press (The Nation). Arif has been an external consultant to the UK stock market regulator, The Financial Services Authority (FSA). The Investor's Guide to IPOs is his first book.