| This paper has chosen 78 listed companies as samples from Chinese A-share market from 2000 to 2005, which have offered seasoned equity. From the three angles of pricing—the market reaction, relative price efficiency, absolute price efficiency, we will give a comprehensive observation of the pricing efficiency of book-building which widely used in China. Among all these factors, we use the effect of announcement of SEO to measure the attack to the second market price from SEO pricing, which is the core index to examine the listed company's SEO pricing efficiency; we use the degree of listed company's inside trait and market situation information reflected by SEO price to observe the relative pricing efficiency; also comparable company analysis is used to calculate the intrinsic value of company to inspect the absolute pricing efficiency. Through the methods such as parametric tests and multilinear regression, we will inspect the efficiency system of SEO pricing and find out the factors which have negative influence on SEO pricing efficiency as well as the advisable factors of SEO reasonable pricing. It has been demonstrated by Empirical Research, with the improvement of pricing marketization, book-building will gradually become mature, and so will the pricing efficiency. Further research has discovered that to enhance the efficiency of SEO pricing, we cannot directly adopt the overseas method, must take the difference of China market system into consideration as well as the impact of shareholding distribution and high price SEO to the SEO pricing efficiency. |
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