The aftermarket performance of initial public offerings

• Main Authors: CHIRAPHOL, Chiyachantana N., PINTA, Theerawat, TAECHAPIROONTONG, Nareerat, WONGKHAM, Anantaporn
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Initial Public Offerings; Underpricing; Aftermarket Performance; Market Efficiency; Asian Studies; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6819; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7818/viewcontent/SET_IPO_DescStat_IRJFE_Dec25_Final.pdf
• Institution: Singapore Management University

This paper examines the aftermarket performance of initial public offerings (IPOs) and explores the underpricing of IPOs in an Asian emerging equity market using a comprehensive sample of IPOs. Our findings suggest that there exist a significant underpricing. Specifically, new issues have been offered at an average market-adjusted discount of about 20%. The magnitude of IPO underpricing is significantly larger for large firms, older firms and firms with small offering size.