Financial coursework, not anything I can cite but this should work: http://www.crab.rutgers.edu/~yaari/Articles-PDF/IPO-Hauser-Yaari-JLEweb.pdf http://www.crab.

Financial coursework, not anything I can cite but this should work: http://www.crab.rutgers.edu/~yaari/Articles-PDF/IPO-Hauser-Yaari-JLEweb.pdf http://www.crab.rutgers.edu/~yaari/Articles-PDF/IPO-Hauser-Y.... Estimates that this IPO discount is around 18.4% in the US. "The price discount varies over time and across initial public offering (IPO) mechanisms but remains economically significant everywhere. Span- ning 4 decades and 38 countries, Ritter’s (2003) survey of international studies reports a mean first-day return (commonly equated with the offer price discount, or underpricing) ranging from 5.4 percent (Denmark) to 257 percent (China), with a median return of 20.7 percent...[the] U.S. mean return [was] 18.4 percent [from] 1960–2001"