IPO characteristics and underprincing in the Alternative Investment Market
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Universidad de La Rioja
info
ISSN: 1350-4851
Argitalpen urtea: 2017
Alea: 24
Zenbakia: 7
Orrialdeak: 485-489
Mota: Artikulua
Beste argitalpen batzuk: Applied Economics Letters
Laburpena
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