IPO waiting period in Pakistan
This study examined the IPO waiting period from offering to the first trading day listed on the Pakistan Stock Exchange from 1995 to 2018. We find that firms that float shares to the general public have passed through multiple layers of inspection by underwriters, auditors, institutional investor...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Institute of Business Administration
2022-06-01
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| Series: | Business Review |
| Subjects: | |
| Online Access: | https://ir.iba.edu.pk/businessreview/vol17/iss1/3/ |
| _version_ | 1827192680425193472 |
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| author | Tayyeba Zanib Muhammad Zubair Mumtaz |
| author_facet | Tayyeba Zanib Muhammad Zubair Mumtaz |
| author_sort | Tayyeba Zanib |
| collection | DOAJ |
| description | This study examined the IPO waiting period from offering to the
first trading day listed on the Pakistan Stock Exchange from 1995 to 2018.
We find that firms that float shares to the general public have passed through
multiple layers of inspection by underwriters, auditors, institutional investors,
and regulatory bodies. The waiting period of the unseasoned issue is an essential
predictor of uncertainty associated with a firm. To test this proposition, we first
determine the endogenous and exogenous factors that influence IPO waiting
period. The results confirm that the firms offer price, percentage of shares after
issuance of IPO, book building mechanism, and SECP regime influence the
IPO waiting period. This study further finds that short waiting period IPOs
are associated with less ex-ante uncertainty, reducing the level of underpricing.
In addition, we report that during short waiting periods, IPOs are prone to less
return volatility and higher aftermarket stock performance. |
| first_indexed | 2024-04-09T21:04:38Z |
| format | Article |
| id | doaj.art-ecdba8360a354266bbe5a19a0aae7471 |
| institution | Directory Open Access Journal |
| issn | 1990-6587 2788-9599 |
| language | English |
| last_indexed | 2025-03-21T08:45:30Z |
| publishDate | 2022-06-01 |
| publisher | Institute of Business Administration |
| record_format | Article |
| series | Business Review |
| spelling | doaj.art-ecdba8360a354266bbe5a19a0aae74712024-07-11T11:48:11ZengInstitute of Business AdministrationBusiness Review1990-65872788-95992022-06-01171477210.54784/1990-6587.1462IPO waiting period in Pakistan Tayyeba Zanib 0Muhammad Zubair Mumtaz 1School of Social Sciences & Humanities, National University of Sciences & TechnologyCollege of Business Administration, University of Bahrain This study examined the IPO waiting period from offering to the first trading day listed on the Pakistan Stock Exchange from 1995 to 2018. We find that firms that float shares to the general public have passed through multiple layers of inspection by underwriters, auditors, institutional investors, and regulatory bodies. The waiting period of the unseasoned issue is an essential predictor of uncertainty associated with a firm. To test this proposition, we first determine the endogenous and exogenous factors that influence IPO waiting period. The results confirm that the firms offer price, percentage of shares after issuance of IPO, book building mechanism, and SECP regime influence the IPO waiting period. This study further finds that short waiting period IPOs are associated with less ex-ante uncertainty, reducing the level of underpricing. In addition, we report that during short waiting periods, IPOs are prone to less return volatility and higher aftermarket stock performance.https://ir.iba.edu.pk/businessreview/vol17/iss1/3/iposwaiting periodex-ante uncertaintyunderpricinglong-run performance |
| spellingShingle | Tayyeba Zanib Muhammad Zubair Mumtaz IPO waiting period in Pakistan Business Review ipos waiting period ex-ante uncertainty underpricing long-run performance |
| title | IPO waiting period in Pakistan |
| title_full | IPO waiting period in Pakistan |
| title_fullStr | IPO waiting period in Pakistan |
| title_full_unstemmed | IPO waiting period in Pakistan |
| title_short | IPO waiting period in Pakistan |
| title_sort | ipo waiting period in pakistan |
| topic | ipos waiting period ex-ante uncertainty underpricing long-run performance |
| url | https://ir.iba.edu.pk/businessreview/vol17/iss1/3/ |
| work_keys_str_mv | AT tayyebazanib ipowaitingperiodinpakistan AT muhammadzubairmumtaz ipowaitingperiodinpakistan |