IPO characteristics and underprincing in the Alternative Investment Market
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Universidad de La Rioja
info
ISSN: 1350-4851
Año de publicación: 2017
Volumen: 24
Número: 7
Páginas: 485-489
Tipo: Artículo
Otras publicaciones en: Applied Economics Letters
Resumen
This study contributes to broadening knowledge concerning the underpricing of initial public offerings (IPOs) in second markets. In particular, we analyse the price formation process of IPOs on the first trading day for a sample of 567 IPOs placed in the London’s Alternative Investment Market. Our findings, after stating that underpricing is significantly positive, show that price variation, observed through the underpricing variable, is related to several offer-specific characteristics, such as subscription proportion, offering price and share adjustment. Underpricing is also related to several control variables (offering size, previous IPO number and previous market return). © 2016 Informa UK Limited, trading as Taylor & Francis Group