Raising Equity Capitals

Raising Equity Capitals

Dynamics of Pricing Initial Public Offers in Malaysia

LAP Lambert Academic Publishing ( 2010-09-27 )

€ 79,00

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In many emerging countries, IPOs are not quickly listed after fixing the offer price. When an offer price is fixed well before listing, the initial underpricing will not necessarily reflect the intended discount on the offer price. A high discount may not be able to mitigate the error in offer pricing, because additional information revealing during the listing time lag affects IPO valuation before listing. However, high discount provides net return to investors after the cost of funds for issue subscriptions. Malaysian evidence shows that initial underpricing is significantly affected by IPO listing time lag, indicating that IPO valuation changes after the offer price is fixed when more information about its quality and market conditions is revealed.

Book Details:

ISBN-13:

978-3-8383-9986-7

ISBN-10:

3838399862

EAN:

9783838399867

Book language:

English

By (author) :

MD HAMID UDDIN

Number of pages:

252

Published on:

2010-09-27

Category:

Economics