Ipo Post Listing Performance
Autor: asasel • February 24, 2017 • Article Review • 1,121 Words (5 Pages) • 555 Views
A Post Listing Performance of Initial Public offers (IPOs) in Indian Capital Market – A Study
Perspective: Indian Authors: Dr Sanjay P Sawant Dessai Source Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2615497 Research objectives:
Sampling Data: IPOs made through BSE during July 2010 to June 2013. Total 82 issues (traded post listing excluding withdrawn) are considered for evaluation purpose. Variables: Industry sectors, IPO issue price and present market price Statistical Tools Used: ANNOVA Findings & Conclusion:
Conclusion: All IPOs were overpriced to take advantage of booming secondary market. |
Report:
Many investors consider IPOs as one of the most profitable investment opportunity with an intention of taking advantage of post listing appreciation. Promoters also take the advantage of high market indices to gain highest return on their equity sale by floating IPOs when equity markets are trading at highest price earnings multiples. In this study, post-listing performance analysis is done to find a relationship between post listing appreciation and different industry sectors.
In this study report, IPOs made through Bombay Stock Exchange during period of July 2010 to June 2013 are considered for performance analysis. Total of 82 issues (which were traded post listing excluding withdrawn) are considered for evaluation purpose. These IPOs are grouped in six groups in accordance with their sector and issue period of six months each. Data such as IPO issue price, sector and current market price is collected from BSE website analysis is done using ANNOVA. All IPOs of all sectors except for gold, were found to have given a negative return over a period of 3 years.
This paper is important from small and retail investor’s perspective. These investors normally do not do much of evaluation and largely depend upon rating given by the rating agencies. Post-listing performance analysis helps in making investment decisions regarding IPOs.
The overseas listing puzzle: Post-IPO performance of Chinese stocks and ADRs in the U.S. market
Perspective: Foreign/ United States Authors: Yongli Luo, Fang Fang, Omar A. Esqueda Source: Journal of Multinational Financial Management Research objectives: Measuring the long-run post-listing performance of Chinese stocks and ADRs Sampling Data: IPOs made in U. S. market during 1993–2011. Data sources: New York Stock Exchange-Listing Directory, China Securities Regulatory Commission and NASDAQ-Company lists in China Variables: IPO issue price, ADRs and present market price Statistical Tools Used: Two-sample t-test of the equality of the means and Pearson Chi-square test of the equality of the medians Findings & Conclusion:
Chinese overseas listings and financing policies are driven by over-investment incentives, leverage effects and free-cash-flow signaling |
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