• myGriffith
    • Staff portal
    • Contact Us⌄
      • Future student enquiries 1800 677 728
      • Current student enquiries 1800 154 055
      • International enquiries +61 7 3735 6425
      • General enquiries 07 3735 7111
      • Online enquiries
      • Staff phonebook
    View Item 
    •   Home
    • Griffith Research Online
    • Reports
    • View Item
    • Home
    • Griffith Research Online
    • Reports
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

  • All of Griffith Research Online
    • Communities & Collections
    • Authors
    • By Issue Date
    • Titles
  • This Collection
    • Authors
    • By Issue Date
    • Titles
  • Statistics

  • Most Popular Items
  • Statistics by Country
  • Most Popular Authors
  • Support

  • Contact us
  • FAQs
  • Admin login

  • Login
  • 2013-03: IPO underpricing in a simultaneous equations model of supply and demand: Evidence from a market of retailers (Working paper)

    Thumbnail
    View/Open
    Discussion paper (872.8Kb)
    Author(s)
    Alanazi, Ahmed S.
    Liu, Benjamin
    Griffith University Author(s)
    Al-Anazi, Ahmed ST.
    Liu, Benjamin
    Year published
    2013
    Metadata
    Show full item record
    Abstract
    This paper fulfills a great need for empirical evidence on the impacts of the supply, demand and allocation of shares on the underpricing of initial public offerings (IPOs). Exploiting a unique dataset and the institutional framework of Saudi Arabian IPOs, we construct a simultaneous equations model of supply and demand. Our evidence indicates that both curves of the market listing day supply and demand of IPOs are significantly negatively sloped with the supply curve being much steeper and above the demand curve. This is consistent with the idea that subscribers "flip" in IPOs immediately on the listing day to capture ...
    View more >
    This paper fulfills a great need for empirical evidence on the impacts of the supply, demand and allocation of shares on the underpricing of initial public offerings (IPOs). Exploiting a unique dataset and the institutional framework of Saudi Arabian IPOs, we construct a simultaneous equations model of supply and demand. Our evidence indicates that both curves of the market listing day supply and demand of IPOs are significantly negatively sloped with the supply curve being much steeper and above the demand curve. This is consistent with the idea that subscribers "flip" in IPOs immediately on the listing day to capture instantaneous profits. The excess demand that occurs during the subscription period becomes excess supply once the shares start floating on the listing day. Our study is the first move towards addressing the underpricing puzzle in a supply and demand context.
    View less >
    Copyright Statement
    Copyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
    Note
    Finance
    Subject
    G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
    G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
    Initial public offerings
    supply and demand
    underpricing
    allocation
    Publication URI
    http://hdl.handle.net/10072/390343
    Collection
    • Reports

    Footer

    Disclaimer

    • Privacy policy
    • Copyright matters
    • CRICOS Provider - 00233E
    • TEQSA: PRV12076

    Tagline

    • Gold Coast
    • Logan
    • Brisbane - Queensland, Australia
    First Peoples of Australia
    • Aboriginal
    • Torres Strait Islander