trending Market Intelligence /marketintelligence/en/news-insights/trending/bEgGPyzP--FtTGhMFG415Q2 content esgSubNav
In This List

OECD flags high fees, parallel pricing in IPO underwriting

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Podcast

Street Talk | Episode 99 - Higher rates punish bond portfolios, weigh on bank M&A

Blog

Insight Weekly: Loan growth picks up; US-China PE deals fall; France faces winter energy crunch

Blog

Insight Weekly: CEO pay jumps; yield curve inversion deepens; wind giants lift turbine prices


OECD flags high fees, parallel pricing in IPO underwriting

The Paris-based Organisation for Economic Co-operation and Development said high underwriting fees for taking a company public seem to have increased and competition should be increased.

For IPOs of less than $100 million, the average cost is 9% to 11% of the transaction. The high price increases the cost of equity "and works against long-term productive investment," the OECD said.

It also said that parallel pricing, whereby firms that are supposed to be competing offer very similar prices, appears to be increased.