New evidence on the pricing and performance of initial public offerings in Thailand, 1997–2008
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This paper examines the pricing and performance of initial public offerings (IPOs) on the Stock Exchange of Thailand (SET) from 1997 to 2008. Underpricing is calculated using headline underpricing and underpricing issuer loss, loss by market value, and loss by issuer price. The results show underpricing of 17.60%, 5.01%, 6.94%, 6.68% and 16.10%, respectively. This is significantly lower underpricing than documented in Thailand before the 1997 Asian financial crisis. Post-listing performance is assessed using monthly cumulative abnormal returns, buy-and-hold returns, and wealth relatives. The findings show that Thai IPOs generally outperform market benchmarks up to 24 months and underperform thereafter.
Emerging Markets Review
© 2010 Elsevier B.V. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Applied Economics not elsewhere classified