The most important explanation of IPOs underpricing are information asymmetry model proposed by Akerlof (1970). It is based on the discrepancy of the information between‚ investors‚ underwriters and issuers. When enterprises go public by issuing shares in stock market‚ the closing stock price on the first-trading day will reflect whether the investors think the shares worth or not. Adequate and sufficient information is required for each party to decide on the IPOs pricing as to meet their own financial
Premium Stock market Stock Seasoned equity offering
1993-1994 In the 1990’s‚ there was around 100‚000 state owned enterprises (SOE) in China and over half of them were losing money. Since 1992‚ most of the SOEs were given freedom to reform and extensive new investment was required for the action. IPO is one of the effective channels to raise capital in the market. Beside the Shanghai Stock Exchange and the Shenzhen Stock Exchange‚ SOE also sought listing out of the PRC and Hong Kong became their first destination. In 1993‚ 5 “H” Shares were listed
Premium Stock market Investment Hong Kong Stock Exchange
16 (2007) 116 – 135 Investor interest‚ trading volume‚ and the choice of IPO mechanism in France Salim Chahine * American University of Beirut‚ The Suliman S. Olayan School of Business‚ Bliss Street‚ P.O.Box: 11-0236‚ Beirut‚ Lebanon Received 3 February 2004 Available online 7 November 2005 Abstract This paper investigates the relationship between underpricing and investor interest level prior to and after the IPO date. Empirical tests show a significant 3-day buy-and-hold abnormal return
Premium Stock market Initial public offering
IPO (Initial Public Offering) of PT. Adaro Energy Tbk. Execution IPO (Initial Public Offering) PT. Adaro Energy Tbk. has been awaited by capital market actors. Coal Price that penetrate US$ 215 per ton on July 2008 in the global market result capital market actors very interest to buy share at company of coal mining. Particularly PT Adaro Energy Tbk. is company of coal mining that has biggest reserve in Indonesia.1 Listing in Indonesia Effect Exchange (BEI) is executed on 16 July 2008. In
Premium Indonesia Jakarta Coal
“Moral hazard‚ asymmetric information and IPO lockups” by Yung and Zender (2010) We will first examine the development of various hypothesis surrounding lock-ups‚ this will be followed by the empirical results supporting the use of proxy variables and we explain how they were used to test the variety of hypotheses. Particular attention will be paid to the separate subsamples of firms‚ and the data concerning the differential correlation between underpricing and lockup length across the subsamples
Premium Initial public offering Venture capital Stock market
Two large state-owned enterprises are swooping on the Hong Kong market with their long-awaited IPOs almost simultaneously this week‚ and the prospect of two large offerings is likely to cast a pall over the city’s stock market. The decisions by Sinopec Engineering and China Galaxy Securities to launch their roadshows separately came after the two large SOEs‚ tightly controlled by the Chinese government‚ both managed to secure strong support from some key cornerstone investors. Sinopec Engineering
Premium Stock market Stock
contrast the competitive advantages between a material processing operation and a customer processing operation‚ namely Dell and Tesco through the Neely criteria (2008). Both of these companies use a mix of customer (CPO)‚ materials (MPO) and information (IPO) processing. The transformation of all of these resources is considered‚ usually with one holding quintessential importance in the entire operations (Slack et al.‚ 2010). COMPANY PROFILES 2.1 Dell Dell currently is the fourth largest PC vendor in
Premium Tesco Retailing Sainsbury's
recapitalize the ownership structure of TRX thorough Initial Public Offering. The analysis is examined from two scenarios. One is that TRX keep on IPO at lower price of $9 per share; another is that it postpones the IPO in 2006. I would project the IPO price of 2005 and 2006‚ respectively based on the management plan. According to the TRX’s balance sheet and financial data‚ TRX was a very young technology-integration company which founded in 1999. By 2004‚ TRX generated $113.4m in total revenues and
Premium Stock market Dot-com bubble Stock
product launch trends. Company-specific charts of interest follow. Key highlights on macro charts. The U.S. prescription market has been growing approximately 1% YOY recently‚ which is consistent with 2010 YTD growth of 1%. Branded drug prescriptions (TRx) are declining 13% YOY; generics are growing 5% YOY. Branded prescriptions represented approximately 25% of U.S. prescription volume but 81% of prescription value in 1H:10. Summary tables at the end capture most key products. We include total prescription
Premium Morgan Stanley
TOC \o "1-4" 1.0Executive Summary PAGEREF _Toc254863429 \h 2 2.0 Problem Statement PAGEREF _Toc254863430 \h 2 3.0 Situation Analysis PAGEREF _Toc254863431 \h 2 3.1 Company’s Objective PAGEREF _Toc254863432 \h 2 3.2 Microenvironmental: Strengths PAGEREF _Toc254863433 \h 3 3.2.1 Marketing PAGEREF _Toc254863434 \h 3 3.2.2 Operation/Management PAGEREF _Toc254863435 \h 3 3.2.3 Human Resources PAGEREF _Toc254863436 \h 4 3.3 Microenvironmental: Weaknesses PAGEREF _Toc254863437 \h 4 3.3.1 IT/Marketing
Premium Target market Health club Physical exercise