The Performance of Roll-Up Initial Public Offerings
Roll-up initial public offerings (IPOs) create a company to consolidate a number of smaller companies in a fragmented industry. The company that results has limited operational experience and must combine several small and diverse companies. These characteristics may increase the uncertainty of the...
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| Published in: | Studies in economics and finance (Charlotte, N.C.) Vol. 20; no. 1; pp. 1 - 11 |
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| Main Authors: | , |
| Format: | Journal Article |
| Language: | English |
| Published: |
MCB UP Ltd
01-01-2002
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| Online Access: | Get full text |
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| Summary: | Roll-up initial public offerings (IPOs) create a company to consolidate a number of smaller companies in a fragmented industry. The company that results has limited operational experience and must combine several small and diverse companies. These characteristics may increase the uncertainty of the offer. We find that roll-up IPOs have higher initial returns than traditional IPOs, implying additional uncertainty. Additionally, roll-up IPOs do not perform as poorly as other IPOs over the long run. This may be due to benefits from economies of scale and a higher degree of monopoly power. |
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| Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
| ISSN: | 1086-7376 1755-6791 |
| DOI: | 10.1108/eb028756 |