The underpricing of gold mining initial public offerings

This study is motivated by How [How, J., 2000. The initial and long run performances of mining IPOs in Australia. Aust. J. Manage. 25, 95–118] who examined 100 Australian gold mining initial public offerings (IPOs) from 1979 to 1990 to report an average 119.51% underpricing return by those IPOs. This study updates that analysis by investigating 114 Australian gold mining IPOs from 1994 to 2004 and finds a significantly lower 13.3% average first day return. Options offered to underwriters can in part explain these returns as can the change in either the Gold Index or the All Ordinaries Index from the date of the prospectus to the date of listing.

Conflicts of interest and China's A-share underpricing

The extremely high A-share underpricing in China's primary market provides us with a very interesting area of empirical research. Previous studies on China's IPO underpricing have been suggestive, but inconclusive. A significant decline in A-share underpricing is found in 2003 relative to previous years (and much less than that recorded in the literature to date). We examine the validity of previous A-share underpricing models, reported in the literature, and find a statistically significant structural break in the data during 2003 when these models are specified. We further explore conflicts of interest in the Chinese IPO market and specify an alternative model to further examine this change in observed market behavior. Our results suggest that a contract with high underwriter's fee leads to less A-share underpricing. Our results also suggest that the asymmetric information hypothesis does not apply in the Chinese IPO market in 2003. Overpricing by the secondary market and the trading activity on the first trading day are the main functions of the A-share underpricing. This study has important implications such as guiding the Chinese government policy regarding the regulations of initial public offering.

The pricing of infrastructure initial public offerings : evidence from Australia

This paper explores first-day returns on infrastructure entity initial public offerings (IPOs) in Australia from 1996 to 2007. While a good deal has been written on the first-day returns of industrial and mining company IPOs and Real Estate Investment Trust IPOs, first-day returns of infrastructure entity IPOs have yet to be reported in the literature. The study uses ordinary least squares regression analysis to identify factors that might influence the percentage first-day returns theoretically available to investing subscribers and factors that might influence the aggregate amount of money left to subscribers by issuers. The study finds that first-day returns, on average, are not significantly different from zero. There is evidence, however, that suggests higher dividend yields and higher percentage direct costs of capital raising influence these first-day returns. The study also finds that infrastructure entity IPOs that seek to raise more equity capital leave less money on the table for subscribing investors.

Initial public offerings of energy companies

This study analyses 158 energy company initial public offerings (IPOs) in Australia from January 1994 to December 2010, including the period of the global financial crisis (GFC). The study finds that energy company IPOs had an average 22.0 % underpricing and that those IPOs that sought to raise more equity capital and engaged underwriters had lower underpricing. There is also evidence that suggests energy company IPOs that offered options to their underwriters had higher underpricing returns, effectively cancelling the lower underpricing effect of the underwriting itself. The energy IPOs that raised equity capital after the 2007/8 global financial crisis do not appear to have offered on average, significantly different underpricing returns to their investors compared to those energy IPOs that raised capital prior to this GFC period. The findings of this study offer insights for issuers who seek to lower underpricing, for underwriters involved in the capital raising and for investors who are looking to invest in Australian energy company IPOs.

Empirical essays on IPOS: the Brazilian case

The purpose of this study is to empirically analyze the main factors that determine the first-day return and the Flipping activity in Brazilian IPOs, taking into account expected results according to national and international researches. The data base encompasses IPOs that took place between May 2004 and February 2011, summing up to 129 IPOs and approximately R$ 128 billion offering. The first-day return, which means the “money left on the table”, was on average 4.6% taking into consideration the issue price, while the Flipping activity totalized R$ 7.2 billion, meaning 5.6% of the offering. The first-day return was analyzed before and after the first trade, and evidences were found supporting (a) the exogenous determination of the issue price, (b) the opening price dependence of prospectus disclosure and of other variables, observable previously to the bookbuilding process, and (c) the cascade behavior of investors in the pricing after the first trade, particularly driven by the underwriter behavior. In regards to the Flipping, it was notorious depending on how much the IPO succeeded, being concentrated in and homogeneous along the first-day, despite the intense negotiation in the first minute. As a general contribution to literature, it was concluded that Information Asymmetry Theory arguments are not sufficient to explain the first-day Underpricing and the Flipping, being necessary arguments based on Behavioral Finance adapted to an intraday perspective.

O desenvolvimento do mercado imobiliário e a abertura de capital desse setor no Brasil

This paper aims to present a study on the development of the real state market in Brazil. The analysis starts from the historical perspective, since the establishment of bases in that market until today's perspective, initial public offering of real state companies. In addition to this analysis, is also intended to discuss the several forms of financing real estate currently available in the Brazilian real estate market. Finally, and perhaps the most important part, analyze the IPO of 15 companies in the industry, held in 2007, notably through comparative graphical analysis, noting the factors that influence stock returns of these companies

Facebook Forum May 8,2002

Panel discussion held at the College of Business Complex Room 152 at the Modesto Maidique Campus hosted by Florida International University on the subject of Facebook's IPO (initial public offering). FIU experts on the panel included: Bogdan Carbunar, professor in the College of Engineering and Computing Science Rosanna Fiske, associate professor in the School of Journalism and Mass Communication Raul Reis, dean of the School of Journalism and Mass Communication Helen Simon, director of the State Farm Financial Literacy Lab and senior instructor in the College of Business Administration Hannibal Travis, associate professor in the College of Law Patrick O'Leary, Executive Associate Dean for Clinical Affairs at FIU's Herbert Wertheim College of Medicine Moderated by Miami Herald Business Editor Jane Wooldridge