Size of offer, over-subscription ratio and performance of Malaysian IPOs
This paper examines the initial and the long-run performance of initial public offerings (IPOs) of stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier s...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2002
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| Online Access: | https://repo.uum.edu.my/id/eprint/420/1/Othman_Yong.pdf |
| _version_ | 1825739679035555840 |
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| author | Yong, Othman Yatim, Puan Sapian, Ros Zam Zam |
| author_facet | Yong, Othman Yatim, Puan Sapian, Ros Zam Zam |
| author_sort | Yong, Othman |
| collection | UUM |
| description | This paper examines the initial and the long-run performance of initial public offerings (IPOs) of stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier studies. Size of offer is not correlated with the over-subscription ratio. In general, initial returns are significantly higher than returns for subsequent longer-term holding periods. Mean initial returns among the three types of issue compared are not significantly different from each other: Only in the case of offer for sale that we find a significant positive correlation between its over-subscription ratio and its initial return. Offer-for sale also shows a positive correlation between its over-subscription ratio and its raw
return for day-365, but turns significantly negative for day-910 and day-1095. In the case of combination
of public issue and offer for sale, over-subscription ratio is not significantly correlated with longer term
returns, for either raw or adjusted return. Finally, in the case of public issue, its over-subscription ratio is significantly correlated with its raw return only for day-180 and day-540, and for its adjusted return, the correlation is significant only for day-180 and day-365. |
| first_indexed | 2024-07-04T05:13:22Z |
| format | Article |
| id | uum-420 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:13:22Z |
| publishDate | 2002 |
| publisher | Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-4202015-06-25T07:34:16Z https://repo.uum.edu.my/id/eprint/420/ Size of offer, over-subscription ratio and performance of Malaysian IPOs Yong, Othman Yatim, Puan Sapian, Ros Zam Zam HG Finance This paper examines the initial and the long-run performance of initial public offerings (IPOs) of stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier studies. Size of offer is not correlated with the over-subscription ratio. In general, initial returns are significantly higher than returns for subsequent longer-term holding periods. Mean initial returns among the three types of issue compared are not significantly different from each other: Only in the case of offer for sale that we find a significant positive correlation between its over-subscription ratio and its initial return. Offer-for sale also shows a positive correlation between its over-subscription ratio and its raw return for day-365, but turns significantly negative for day-910 and day-1095. In the case of combination of public issue and offer for sale, over-subscription ratio is not significantly correlated with longer term returns, for either raw or adjusted return. Finally, in the case of public issue, its over-subscription ratio is significantly correlated with its raw return only for day-180 and day-540, and for its adjusted return, the correlation is significant only for day-180 and day-365. Universiti Utara Malaysia 2002 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/420/1/Othman_Yong.pdf Yong, Othman and Yatim, Puan and Sapian, Ros Zam Zam (2002) Size of offer, over-subscription ratio and performance of Malaysian IPOs. Malaysian Management Journal, 6 (1&2). pp. 35-51. ISSN 0128-6226 http://mmj.uum.edu.my |
| spellingShingle | HG Finance Yong, Othman Yatim, Puan Sapian, Ros Zam Zam Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title | Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title_full | Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title_fullStr | Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title_full_unstemmed | Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title_short | Size of offer, over-subscription ratio and performance of Malaysian IPOs |
| title_sort | size of offer over subscription ratio and performance of malaysian ipos |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/420/1/Othman_Yong.pdf |
| work_keys_str_mv | AT yongothman sizeofofferoversubscriptionratioandperformanceofmalaysianipos AT yatimpuan sizeofofferoversubscriptionratioandperformanceofmalaysianipos AT sapianroszamzam sizeofofferoversubscriptionratioandperformanceofmalaysianipos |