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The purpose of this research is to determine the effect of financial variables (ROE, DER, firm size) and non-financial variables (underwriter reputation, offer size, firm age) to underpricing rate. This research was conducted on non-financial companies that conduct IPO in Indonesia Stock Exchange in the period 2010-2016. Data collection techniques used are literature study and observation. Sampling is collected by using purposive sampling method that obtained 91 companies as research sample from population 156 companies. The model used to test the relationship between independent variables with dependent variable is multiple regression model. The results of multiple regression analysis showed that firm size variables affect the underpricing rate. While other independent variable have no effect on underpricing rate.

Mestrado em Análise Financeira Submitted by Filomena Borba (fmborba@iscal.ipl.pt) on 2019-03-02T12:15:58Z No. of bitstreams: 1 Dissertacao_Serghei_IPO_FINAL.pdf: 1261453 bytes, checksum: 1c8056959d9639cb82edfcaf532a7be6 (MD5) Made available in DSpace on 2019-03-02T12:15:58Z (GMT). No. of bitstreams: 1 Dissertacao_Serghei_IPO_FINAL.pdf: 1261453 bytes, checksum: 1c8056959d9639cb82edfcaf532a7be6 (MD5) Previous issue date: 2018-02 info:eu-repo/semantics/publishedVersion

Underpricing is a subject that is well documented, there is a lot of different theories that claims special traits of companies that affect underpricing which some of these are age, growth and size of a company. There is also a difference amongst industries and especially the Tech industry which show a higher percentage of underpricing. Baker Mckenzie reports that the number of IPO: s in Sweden will grow in 2017, further one can see that under the year 1980-2011 there was an average underpricing of 27,3 percentage in Swedish companies. The study aims to analyze if there is a difference in underpricing within the first day when it comes to the Tech industry and the markets as a whole. The study also intends to prove that there is a significant relationship between underpricing, age, revenue growth, revenue and number of employees. Data was collected from databases and was analyzed through a regression analysis and comparing underpricing between the Tech industry and the other companies in the study. These analyzes was used to accept or reject the studies four hypothesizes and answer the questions of the study. The analysis and research showed a higher underpricing amongst the Tech industry then the rest of the companies but the study could not prove a significant relationship between underpricing and age, turnover growth, revenue and number of employees. Underprissättning är ett ämne som är välstuderat och väldokumenterat, det finns många teorier som hävdar vilka egenskaper hos ett bolag som påverkar till underprissättning. Några av de faktorerna är ålder, tillväxt samt storlek. Det finns en skillnad bland branscher enligt tidigare undersökningar som hävdar att Tech branschen underprissätts i högre grad jämfört med andra branscher. Baker Mckenzie rapporterar att börsnoteringar i Sverige kommer öka under 2017, vidare kan man se att under åren 1980–2011 var det i snitt en första dagsavkastning på 27,3 procent på svenska börsnoteringar. Syftet med studien är att analysera om det finns en skillnad på första dagens avkastning inom Tech branschen jämfört med marknaden som helhet, studien ämnar också att påvisa om det finns signifikanta samband mellan underprissättning och ålder, omsättningstillväxt, omsättning samt antalet anställda. Information har samlats in från databaser och analyserats genom en regressionsanalys samt en komparativ studie av prissättning mellan Tech branschen och resterande branscher. De genomförda analyserna användes för att acceptera eller förkasta studiens fyra hypoteser samt svara på studiens frågeställningar. Analyserna och forskningen påvisade en större grad av underprissättning bland Tech bolagen än övriga bolag men studien kunde ej påvisa ett signifikant samband mellan underprissättning och bolagets omsättning, ålder, antal anställda samt omsättningstillväxt.

The research about abnormal return of initial offering has been carried out by many other researchers. The results indicated that underpricing which signed by positive abnormal returns occurred in the short time. However, the effects that has caused underpricing was still indicate inconsistency. The objective of this research is to examine the differences of abnormal return between company that carry out initial public offering in the period before and during monetary crisis,with a special reference to Jakarta Stock Exchange. Furthermore, it also aims to find out effects of stock value uncertainty and company value that proxied by standard deviation and age, effect of informed demand proxied by delay time, and effect of underwriter reputation on abnormal return.Results indicated that there was significant abnormal return difference between the periods before and during monetary crisis. The factor that effected abnormal return in the period before monetary crisis was delay variable and underwriter reputation. The results was contrary with initial assumption. The significant factor that influenced abnormal return in the period during monetary crisis was standard deviation and age

Dissertação de mestrado em Finanças, O objetivo deste estudo é investigar se as características inerentes ao mercado e à oferta, bem como, a reputação do underwriter têm influência sobre o underpricing das IPOs. Inicialmente procura perceber-se qual o efeito que alterações no mercado provocam sobre o underpricing e posteriormente, através de variáveis como o número de ações emitidas na IPO, o total de receitas angariadas na IPO e o Gross Spread, pretende estudar-se em que medida é que as características da oferta alteram o nível do underpricing. Por fim, relaciona-se a reputação do underwriter com o underpricing, de modo a perceber de que forma é que um underwriter de prestígio influencia o underpricing da IPO. A amostra principal considerada para a realização deste estudo compreendia 1832 IPOs ocorridas nos E.U.A., para o período de 2000 a 2011 e foi recolhida das bases de dados SDC Platinum e Datastream. Depois de realizados testes às variáveis em estudo, foi possível concluir que o underpricing tem uma relação positiva e estatisticamente significativa com o período da “bolha da internet” e, em contrapartida, uma relação negativa, mas da mesma forma estatisticamente significativa, com a crise do subprime. Conclui-se que as características do mercado têm influência no underpricing das IPOs. Os resultados também sugerem que algumas das características da oferta consideradas, como o número de ações emitidas na IPO, a emissão ocorrer no país de origem da empresa emitente e a empresa emitente ser da indústria tecnológica ou da internet, conduz a alterações no underpricing das IPOs. Por fim, verificou-se que quando associado ao período da “bolha da internet”, o ranking de reputação encontra-se positivamente relacionado com a variável dependente. Os resultados obtidos relativos a estas variáveis estão assim, em conformidade com o previsto pela literatura precedente., The present study aimed to verify how certain factors, related with market conditions as well as the underwriter reputation influence IPOs underpricing. To pursue this goal, a sample of 1832 IPOs that occurred on the USA market, in the period from 2000 to 2011, were collected from the databases SDC Platinum e Datastream. After applying all the proposed tests to the collected data, it was possible to conclude that there is a positive relation between the underpricing and the bubble period, but also a negative relation between the underpricing and the subprime crisis. Another conclusion is that the market characteristics have no influence over the IPOs underpricing as well as some of the offers characteristics (number of stocks issued during the IPO, if the IPO occurs in her native country and if the industry of the company is from technology or internet industry) lead to some changes over the underpricing value. It was also possible to conclude that when we associate the bubble period to the reputation rankings there are evidences that show a positive relation between them and the dependent variable. All this results are consistent with the previous studies.

Dissertação de mestrado em Finanças, Este estudo pretendia identificar a relação existente entre o underpricing das IPOs e as variáveis reputação do underwriter e dispersão de propriedade. Para que fosse exequível atingir o objetivo proposto, optou-se por replicar o estudo de Booth e Chua (1996), embora não na íntegra, uma vez que esse estudo trata dados com origem no mercado dos E.U.A. e o estudo que se pretendia efetuar almejava refletir a realidade europeia. A amostra em estudo foi recolhida da base de dados SDC Platinum ™, sendo constituída por 349 IPOs ocorridas em mercados da União Europeia [21 do tipo best efforts (≈ 6%) e 328 firm commitment (≈94%)] no período de referência de 2000 a 2012. Após a aplicação da metodologia adotada, através da análise de resultados foi possível identificar evidências empíricas que atestam as hipóteses colocadas, ou seja, conseguiuse demonstrar que ao associar um underwriter de elevado prestígio a um contrato firm commitment, o underpricing da IPO sofre um decréscimo e que o elevado prestígio, em geral, faz com que o underpricing de uma IPO diminua. Concluísse que quer a procura por dispersão de propriedade, quer o prestígio do underwriter influenciam o valor do underpricing de uma IPO., The aim of this study is to identify the relation between the IPOs underpricing and underwriter reputation, as well as between the IPOs underpricing and ownership dispersion. In order to achieve this goal, I replicate Booth and Chua (1996) study. In order to test the proposed hypotheses, a sample of 349 IPOs [21 best efforts (≈ 6%) and 328 firm commitment (≈94%]) from European markets, in the period between 2000 and 2012, were retrieved from SDC Platinum ™ data base. After applying the adopted methodology and analyzing the results, it was possible to identify that associating a high prestige underwriter to a firm commitment contract leads, in general, to a lower underpricing, which means that ownership dispersion as well as underwriter prestige influence the underpricing of an IPO.

The concept of grandstanding comes from Gompers (1996), in his article, he defined “to grandstand” as “to act or conduct oneself with a view to impressing onlookers”. The idea of grandstanding does not only apply solely to venture capital but also could apply to underwriters of IPOs industry as well. IPOs activities provide huge revenues for underwriters, so underwriters compete with each other for IPO business. China’s stock market grows explosively after 2006, and it has the highest underpricing, as well as more and more underwriters have emerged recently, so our paper is constrained under Chinese stock market environment. We empirically examine whether inexperienced underwriters grandstand when they conduct IPOs in order to achieve more market shares, for example by deliberate underpricing or charging lower fee rates. This study is conducted from the underwriter’s perspective. We use two kinds of reputation measurement methods to define “inexperienced” and “prestigious underwriters” and employ a quantitative approach to analyze the data. Evidence from a sample of 392 IPOs from June 19, 2006 to March 24, 2010 suggests that inexperienced underwriters do not have incentives to grandstand. The number of IPOs that underwriters have conducted and recent IPO performance do not always contribute to a gain of market share directly. Therefore, inexperienced underwriters do not provide more underpriced IPOs nor do they charge lower fee rates. Evidence also marginally supports that underwriters do not intend to conduct small offer sized IPOs.

This paper analyzes a comprehensive data set of 160 non venture-backed, 79 venture-backed and 61 bridge financed companies going public at Germany's Neuer Markt between March 1997 and March 2002. I examine whether these three types of issues differ with regard to issuer characteristics, balance sheet data or offering characteristics. Moreover, this empirical study contributes to the underpricing literature by focusing on the complementary or rather competing role of venture capitalists and underwriters in certifying the quality of a company when going public. Companies backed by a prestigious venture capitalist and/or underwritten by a top bank are expected to show less underpricing at the initial public offering (IPO) due to a reduced ex-ante uncertainty. This analysis provides evidence to the contrary: VC-backed IPOs appear to be more underpriced than non VC-backed IPOs.