I'm looking for data on the size of buy-ask spread of stocks after they go onto the secondary market on the day of their IPO. The only thing I've found through Googling is a book that (I think) misinterprets an academic article, and claims that the average spread over the first day is 3% of the offer price (which itself tends to be ~15% lower than opening price) for hot IPOs and 8% for average IPOs (Draho, 2004, p254). That seems way too high. Then again, I have very little experience. 1. Could the average really be 3-8% of offer price? 2. Anyone know where to find data on size of buy-ask spreads for stocks on IPO day?
u come to the wrong place. this is where inmates are allowed to bellow. search jack hershey for a good example.