Capital raising by Australian biotechnology IPOs: Underpricing, money left and proceeds raised

Jens, P, Brooks, R, Nicoletti, G and Russell, R 2006, 'Capital raising by Australian biotechnology IPOs: Underpricing, money left and proceeds raised', Accounting Research Journal, vol. 19, no. 1, pp. 31-45.


Document type: Journal Article
Collection: Journal Articles

Title Capital raising by Australian biotechnology IPOs: Underpricing, money left and proceeds raised
Author(s) Jens, P
Brooks, R
Nicoletti, G
Russell, R
Year 2006
Journal name Accounting Research Journal
Volume number 19
Issue number 1
Start page 31
End page 45
Total pages 15
Publisher Queensland University of Technology
Abstract The phenomenon of IPO underpricing and issuing companies leaving money on the table is observed across the world A major issue is around IPO underpricing for high technology companies. This paper analyses IPOs for Australian biotechnology companies. We find significant relationships exist between prospectus information and IPO capital raising success and that money left on the table at IPO (a capital raising argument) is more important than the underpricing returns themselves. We compare our results to those of Deeds, Decarolis and Coombs. (1997) for US biotechnology capital raisings and outline the reasons underlying similarities and differences.
Subject Medical Biotechnology not elsewhere classified
Innovation and Technology Management
Financial Economics
Keyword(s) biotechnology
IPO
prospectus information
capital raising
IPO underpricing
high technology companies
Australian biotechnology companies. US biotechnology
ISSN 1030-9616
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