Abstract:
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This paper aims to study all factors that affect the Initial Public Offering return rate on the first date of trading in the Securities Exchange of Thailand (SET) and Market for Alternative Investment (MAI). All data would be analysed by the Quantile Regression between IPO return rate on the first date of trading and independent variables including IPO price, market return, operating period, earning per share, reputation of the investment banking and return on equity using selling IPO securities information from 1 January 2012 to 31 December 2016 in total of 137 securities.
The study found factors, that could affect the IPO return rate in the SET, including offering value, market return and earning per share. In fact the IPO price of the securities relates in opposite direction to the IPO return rate on the first date of trading in the SET. While the market return, which is calculated from the closing price at the last date of the IPO stocks subscription and the closing price on the first date that the IPO stocks trading in the market, and average earning per share shown in the financial statement of the year before the IPO stocks subscription relate in the same direction with the return on the first date of trading in the SET.
For the MAI, it was found that the factors affecting the IPO return rate in the MAI are including IPO price relates in opposite direction to the Initial Public Offering return rate on the first date of trading in the MAI, the average earning per share relates in the same direction with the Initial Public Offering return rate on the first date of trading in the MAI. The first three factors that affect the IPO return rate on the first date of trading manipulate same effects in both SET and MAI. Furthermore operating period, reputation of the investment banking, and return on equity would also affect the IPO return rate on the first date of trading in the MAI.
Keywords: stock / Initial Public Offering / return / IPO return rate / return rate on the first date of trading
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