Geertsema, PaulLu, Helen2024-05-302024-05-3020161544-612310.1016/j.frl.2016.02.001http://hdl.handle.net/20.500.12127/7484In Chinese A-share IPO’s the bulk of available stock is allocated to investors via a lottery, with the payoff structure of participating in an IPO resembling a game. We solve a simple version of the game for the static Nash equilibrium in continuous strategies and derive the optimal IPO deposit for an arbitrary number of investors with common risk aversion within a two-moment decision model. A data set of 1121 Chinese A-share IPO’s provides empirical support for our results.enIPO UnderpricingRisk AversionGame TheoryFinance Research Letters1544-6131317171306732