Research on IPO Pricing Mechanism Based on Auction

DOI

10.2991/jahp-18.2018.45How to use a DOI?

Keywords

IPO; medium and small investors; mechanism design; information asymmetry

Abstract

There are three pricing methods: fixed price, auction and accumulative bid pricing. Although cumulative bidding pricing is the first choice of major capital markets in the world, in recent years, Some financial markets in some countries and regions have started to adopt auction methods again and have perfected various auction mechanisms in the process of IPO pricing and become the pricing mechanism approved by the market. Based on the current situation of China A-share IPO market, this paper puts forward an auction model to analyze the role of this model in the pricing of new shares, and concludes that with the increase of the number of small and medium-sized investors, this paper makes a certain sort of research on the pricing mechanism of new shares. Institutional investors will be allocated less shares and information rentals, while issuers’ earnings will increase.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yunzhao Lu
PY  - 2018/08
DA  - 2018/08
TI  - Research on IPO Pricing Mechanism Based on Auction
BT  - Proceedings of the 3rd International Conference on Judicial, Administrative and Humanitarian Problems of State Structures and Economic Subjects (JAHP 2018)
PB  - Atlantis Press
SP  - 222
EP  - 225
SN  - 2352-5398
UR  - https://doi.org/10.2991/jahp-18.2018.45
DO  - 10.2991/jahp-18.2018.45
ID  - Lu2018/08
ER  -