Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994
This paper studies the underpricing of Initial Public Offerings ("IPOs") listed on the Second Board of the Kuala Lumpur Stock Exchange ("KLSE") during 1 989 to 1 994. The results show that the average return, based on the difference between the first day closing price and the...
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| Format: | Project Paper Report |
| Language: | English English |
| Published: |
1997
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8095/ http://psasir.upm.edu.my/id/eprint/8095/1/GSM_1997_43_A.pdf |
| _version_ | 1848840776640888832 |
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| author | Ooi, Eng Hong |
| author_facet | Ooi, Eng Hong |
| author_sort | Ooi, Eng Hong |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper studies the underpricing of Initial Public Offerings ("IPOs") listed on the Second
Board of the Kuala Lumpur Stock Exchange ("KLSE") during 1 989 to 1 994. The results
show that the average return, based on the difference between the first day closing price
and the offer price, is approximately 65%. However, the returns after the first day up-to the
first month of listing normally decline, even though there are not significantly difference from
the returns received on the first day of listing. During the third month of listing, the
underpricing becomes larger and this continues up-to the third year, where the average
underpricing is 251 %. It is clear from this study that the new issues are mostly underpriced.
In this study, the relationships between level of underpricing and other variables like
underwriters and auditors involved in the IPOs, the size of public issues and the nature of
business of the listing company are also studied. |
| first_indexed | 2025-11-15T07:32:43Z |
| format | Project Paper Report |
| id | upm-8095 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T07:32:43Z |
| publishDate | 1997 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-80952023-12-07T02:08:35Z http://psasir.upm.edu.my/id/eprint/8095/ Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 Ooi, Eng Hong This paper studies the underpricing of Initial Public Offerings ("IPOs") listed on the Second Board of the Kuala Lumpur Stock Exchange ("KLSE") during 1 989 to 1 994. The results show that the average return, based on the difference between the first day closing price and the offer price, is approximately 65%. However, the returns after the first day up-to the first month of listing normally decline, even though there are not significantly difference from the returns received on the first day of listing. During the third month of listing, the underpricing becomes larger and this continues up-to the third year, where the average underpricing is 251 %. It is clear from this study that the new issues are mostly underpriced. In this study, the relationships between level of underpricing and other variables like underwriters and auditors involved in the IPOs, the size of public issues and the nature of business of the listing company are also studied. 1997-12 Project Paper Report NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/8095/1/GSM_1997_43_A.pdf Ooi, Eng Hong (1997) Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994. [Project Paper Report] Stock exchanges - Malaysia - Kuala Lumpur English |
| spellingShingle | Stock exchanges - Malaysia - Kuala Lumpur Ooi, Eng Hong Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title | Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title_full | Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title_fullStr | Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title_full_unstemmed | Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title_short | Underpricing of New Issues Listed on the Second Board of the Kuala Lumpur Stock Exchange During 1989 to 1994 |
| title_sort | underpricing of new issues listed on the second board of the kuala lumpur stock exchange during 1989 to 1994 |
| topic | Stock exchanges - Malaysia - Kuala Lumpur |
| url | http://psasir.upm.edu.my/id/eprint/8095/ http://psasir.upm.edu.my/id/eprint/8095/1/GSM_1997_43_A.pdf |