Abstract

The paper studies the IPO underpricing in the Italian market during the Covid-19 pandemic. Our findings on a sample of 212 Italian IPOs between 2008 and 2021 show that IPOs in the Covid period (2020-2021) exhibit higher underpricing than IPOs in previous years. We also investigate whether and to what extent prospectus extension is a mitigation factor of underpricing during the pandemic. The results show that extended prospectuses measured as number of pages contribute to contain the underpricing even during the pandemic crisis. The research provides interesting managerial implications, suggesting companies to prepare comprehensive and complete prospectuses allowing investors to truly appreciate risks and opportunities of investing in the company