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In the literature, information asymmetry and valuation uncertainity are always referred to the important concerns for a firm to choose an initial public offering (IPO) allocation procedure. The new emerging stock market of China is a unique trial place as it has possibly practiced three pairs of parallel IPO allocation procedures: private placements and local public offerings; local public offerings and national public offerings; and national public offerings and bookbuilding. Interestingly, the empirical analyses of this article provide the evidences that the IPO firms with more information asymmetry and valuation uncertainty are more likely to prefer private placements to local public offerings, or local public offerings to national public offerings, or national public offerings to bookbuilding.
