The US IPO cartel

Felix Salmon writes The US IPO cartel "Mark Abrahamson, Tim Jenkinson, and Howard Jones, of Oxford University, have an utterly compelling paper out proving that there’s collusion among investment banks in the US — it doesn’t matter whether they’re European or American banks — to keep IPO proceeds set at 7%. Using a very high-quality new dataset, they compare US and European IPOs, and get the following result. This chart just shows IPO fees for deals between $25 million and $100 million (in 2007 dollars)."



Worth a read, and an investigation.