Determining of IPO under-pricing in the Philippines from 2002-2012
Initial public offering is a way for companies to go public and raise capital through equity for their projects. Under-pricing of an IPO occurs when the market value of the stock is greater than its offer price during its IPO. This research documents and analyses the determinants of under-pricing wh...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
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Animo Repository
2013
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/18448 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Initial public offering is a way for companies to go public and raise capital through equity for their projects. Under-pricing of an IPO occurs when the market value of the stock is greater than its offer price during its IPO. This research documents and analyses the determinants of under-pricing which are: market capitalization, market volatility, offer size, proportion of shares offered (PSO) to the public and PE ratio. All investors in an IPO are affected by under-pricing. The research can help in understanding the determinants of under-pricing duirng IPOs in the Philippine market and identify those which factors cause a firm to under-price its offer.
Using OLS regression, this research is able to conclude that market volatility had significant effect on under-pricing while market capitalization, offer size, PSO and PE ratio had insignificant effect on under-pricing. |
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