AN EXAMINATION OF THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS IN HONG KONG: 1980?90

1992 ◽  
Vol 19 (2) ◽  
pp. 165-186 ◽  
Author(s):  
paul Mcguinness
Keyword(s):  
Hong Kong ◽  
Initial Public Offerings ◽  
Public Offerings

scholarly journals A Comparative Study of Initial Public Offerings in Hong Kong, Singapore and Malaysia

2016 ◽  
Vol 4 (1) ◽  
pp. 1-12
Author(s):  
Horace Ho
Keyword(s):  
Hong Kong ◽  
Comparative Study ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Agency Cost ◽  
Managerial Ownership ◽  
Public Offerings ◽  
Subscription Rate ◽  
Highly Correlated ◽  
The Relationship

Abstract This paper presents the findings of a comparative study on the performance of the initial public offerings (IPOs) of shares listed on the Hong Kong Stock Exchange (HKX), Singapore Exchange (SGX) and Bursa Malaysia (MYX). One indicator of the success of an IPO is its subscription rate, which can be used as a proxy for the level of investor confidence in the stock being offered. This paper examines the relationship between the performance of an IPO and its subscription rate, and the corporate factors that may affect an investor’s decision to subscribe to an IPO. A previous study conducted in Hong Kong (Ho, 2013) did not find support for the effect of the four corporate factors, namely size, managerial ownership prior to the IPO, industry differences and company age, on the subscription decision. However, managerial ownership prior to the IPO was found to be highly correlated with good performance, which could be attributed to a low agency cost in situations where managerial ownership is substantial. Further evidence from Singapore and Malaysia can help to shed light on the importance of agency cost in the pricing of IPOs.

An Examination of the Underpricing of H-Share IPOs in Hong Kong

2010 ◽  
Vol 13 (04) ◽  
pp. 559-582 ◽  
Author(s):  
Terence Tai-Leung Chong ◽  
Shuo Yuan ◽  
Isabel Kit-Ming Yan
Keyword(s):  
Growth Rate ◽  
Hong Kong ◽  
Initial Public Offerings ◽  
Ipo Underpricing ◽  
Market Conditions ◽  
Public Offerings ◽  
H Share

The main purpose of this paper is to study the empirical determinants of the underpricing of H-share initial public offerings (IPOs) during the 1993–2003 period. A special characteristic of H-shares is that they are shares of companies incorporated in China, but are also listed abroad. Our estimates indicate that the average IPO underpricing level of H-shares was about 16.8%. We find that the conventional explanations for the worldwide IPO underpricing are not adequate in explaining the underpricing level of H-shares. Some new factors that are important in explaining the underpricing phenomenon in H-shares are identified. We show that the degree of IPO underpricing is positively associated with market conditions prior to issuance. It is also negatively related to the range of the issuing prices as well as to the growth rate of historical profits. In addition, it is found that firms cross-listed in Hong Kong and America have higher underpricing levels.

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