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    Bank of Finland, Rauhankatu 19 B, Helsinki

Vladimir Ivanov (U.S. Securities and Exchange Commission): U.S. exchange upgrades: Reducing uncertainty through a two-stage IPO

Co-authors: Rebel A. Cole and Ioannis V. Floros


We examine the effects on IPO uncertainty of an alternative going-public mechanism – the two-stage IPO, where a firm first gets quoted on the OTC market, and then upgrades to a national exchange where it first issues public equity. We find that a two-stage IPO firm experiences lower underpricing and return volatility than does a similar traditional IPO firm. We also find that uncertainty decreases significantly between the times of first OTC market quotation and the national exchange upgrade. We show evidence that two-stage IPOs with greater disclosure and liquidity during the first stage experience greater reduction in uncertainty.


Research seminars organised by the Bank of Finland's research unit are held on Thursdays at 10:30–11:45 in Rauhankatu 19, 3rd floor big meeting room (unless indicated otherwise). Seminars are held in English.

Research seminars are open to all economists (unless indicated otherwise). Please register in advance at research(at)bof.fi by noon of the preceding day. Visitors will be escorted from Rauhankatu 19 B (Kirjasto/Library) entrance to the seminar room 10 minutes before the seminar.