The Structure and Role of the Underwriting Syndicate

This chapter presents research findings on the structure and role of underwriter syndicates in the initial public offering (IPO) process, thereby extending the list of participants beyond the lead underwriter. The authors rely on recent studies to offer a more comprehensive picture of syndicate structure and size in Europe and the United States. Research questions being addressed include the following: How are underpricing and reputation linked to syndicates? How many banks should be included in the syndicate? What responsibilities can be shared? Finally, the chapter concludes with a discussion of avenues for future research on IPO syndicate structure.