Determining of IPO under-pricing in the Philippines from 2002-2012

Date of Publication

2013

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Edralin C. Lim

Defense Panel Chair

Rogelio Sy Siong Kiao

Defense Panel Member

Enrico Amat

Abstract/Summary

Initial public offering is a way for companies to go public and raise capital through equity for their projects. Under-pricing of an IPO occurs when the market value of the stock is greater than its offer price during its IPO. This research documents and analyses the determinants of under-pricing which are: market capitalization, market volatility, offer size, proportion of shares offered (PSO) to the public and PE ratio. All investors in an IPO are affected by under-pricing. The research can help in understanding the determinants of under-pricing duirng IPOs in the Philippine market and identify those which factors cause a firm to under-price its offer.

Using OLS regression, this research is able to conclude that market volatility had significant effect on under-pricing while market capitalization, offer size, PSO and PE ratio had insignificant effect on under-pricing.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21876

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

96 leaves : illustrations

Keywords

Going public (Securities)--Philippines

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