The tender system - reduces underpricing and increases market efficiency
This report presents the empirical findings on the efficacy of the dual-tranche system of share flotation and/or the newly introduced "when-issued" market in increasing the proceed from new issues, reducing underpricing and improving market efficiency in Singapore. Results showed that i...
Saved in:
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2015
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/63933 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | This report presents the empirical findings on the efficacy of the dual-tranche
system of share flotation and/or the newly introduced "when-issued" market in
increasing the proceed from new issues, reducing underpricing and improving market
efficiency in Singapore. Results showed that issuers indeed raised reasonably more
money on a per share basis and underpricing was reduced in the tender tranche as a
consequence. Tests for market efficiency indicated that the weighted-bids does not
provide significant insight into an issue's probable short-run equilibrium price while
"when-issued" trading has helped to improve market efficiency. |
|---|