The IPO Decision

Why and How Companies Go Public

Jason Draho, Morgan Stanley, New York, US

The IPO Decision is an exciting new book that clarifies how the initial public offering (IPO) process actually works. It separates fact from fiction and imposes a logical structure on the most up-to-date IPO-related research. All major topics pertaining to the going-public process are included: IPO timing, the financial, strategic, and corporate governance benefits and costs of public ownership, corporate restructuring, valuation, the role of the investment bank in the primary and secondary markets, the optimality of IPO mechanisms (book-building vs. auctions), analyst coverage, and the long-run performance of IPOs.

‘Because of its scope and detail, The IPO Decision would be a useful addition to an academic library serving a finance program or that has a financial services library. Public librarians might consider this book if they have a large constituency of sizable private businesses of finance students.’
– Janet Hartman, Research Librarian, William Blair & Co, Chicago, Business Information Alert

‘This volume certainly belongs in undergraduate libraries. Faculty who teach courses in the economics of finance can use the book as a reference and as a guide for students working on papers on the economics of initial public offerings (IPOs). Draho summarizes the extant literature on all aspects of the subject. For example, a student interested in the valuation process underlying initial public offerings receives a well-written overview of the approaches used, including both discounted cash flows and real option analysis. Students are also guided to the relevant literature on the subject. . . a useful resource for beginning research on this topic. Highly recommended.’
– W.S. Curran, Choice

‘Jason Draho’s The IPO Decision is a clear, well organized, and especially well researched book on the IPO environment, process, and stock price results.’
– Roger G. Ibbotson, Yale University and Chairman, Ibbotson Associates, Inc., US

‘Even more important in the post-Internet bubble world, The IPO Decision by Jason Draho provides a critical, in-depth and practical perspective on the crucial terms and factors that influence the IPO process. From the company that plans to go public (or its professional advisor) to the buy side or sell side investment banker – the book provides a roadmap for all professionals associated with the IPO process.’
– Ross Barrett, President and Co-Founder, VC Experts, Inc., New York, US

‘This book provides a comprehensive description and analysis of why and how firms float on the Stock Market. It reviews and takes forward current research on a range of issues concerning the price of shares at flotation and after.’
– Jonathan Michie, Birkbeck College, University of London, UK