About this document
IPO Valuation and Pricing Analysis by Wishnu Okky Pranadi Tirta is a document available to read on EtoBox.
Underwriters use several valuation methods like multiples valuation, dividend discount models, and discounted cash flow analysis to determine the fair value of IPO firms. However, these valuation methods tend to produce estimates that are positively biased compared to the equilibrium market value. Underwriters then intentionally set the preliminary offer price below the estimated fair value to encourage investor participation. While some of this discount is recovered by raising the price during the bookbuil
- Author
- Wishnu Okky Pranadi Tirta
- Language
- EN