The strategy of going public: How UK firms choose their listing contracts

Marc Goergen, Arif Khurshed, Ram Mudambi

Research output: Contribution to journalArticlepeer-review


UK firms going public have a choice between public offers and placings. This choice has important implications in terms of who bears the risk of the issue failing and of its costs. We find that firms with higher ex ante uncertainty choose a placing contract. Highly reputable sponsors and creditor screening serve as signals of firm quality, enabling such firms to choose a public offer. Large and multinational firms usually choose a public offer whereas there is some evidence that very small issues choose a placing. Finally, the 'hotness' of the IPO market increases the probability of placings. © 2006 Blackwell Publishing Ltd.
Original languageEnglish
Pages (from-to)79-101
Number of pages22
JournalJournal of Business Finance and Accounting
Issue number1-2
Publication statusPublished - Jan 2006


  • Certification
  • IPOs
  • Listing contracts
  • Placings
  • Public offers
  • Signalling
  • Sponsors


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