Offering price is set by public company and underwriter, but the price always is underpriced. There is a restricted price fluctuation in Taiwanese stock market, which causes price of initial public offering doesn¡¦t response real marker situation in short run. New securities laws and regulations requests underwriter set an appropriate offering price to meet the real situation of supply and demand in market since 2005. Competent authority cancels offering price formula and rules that new stocks are offered by public subscription and book building. We take IPO samples since 2005, to research performance between public information and initial return.
The conclusions of this study are presented as follows:
1.The emerging stock company becomes over-the-counter (OTC) company or the OTC company becomes listed company by initial public offering, which average transaction price of last transaction date in market is a good estimator that can predict initial return performance of IPO. The higher average transaction price of last transaction date in market, the more initial return.
2.New securities laws and regulations requests underwriter set an appropriate offering price to meet the real situation of supply and demand in market. The underwater has an incentive to set a lower offering price to avoid law risks.
3.The median of book building price range is smaller than market price, the higher closing price of first listed transaction date.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0627107-165920 |
| Date | 27 June 2007 |
| Creators | Wang, Ching-lin |
| Contributors | Lanfeng Kao, Anlin Chen, Ruey-Dang Chang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0627107-165920 |
| Rights | not_available, Copyright information available at source archive |
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