Short Run Underpricing of Initial Public Offering (IPOs) in the Johannesburg Stock Exchange (JSE)
AbstractThe underpricing of initial public offerings (IPOs) represents one of the anomalies observed in primary markets worldwide, however, the depth and breadth of it varies from country to country, and sector to sector. This study is an empirical analysis of short run performance of IPOs in the Johannesburg StockExchange (JSE). Using data for 138 South African IPOs that were listed on the JSE from 2006 to 2010, we found significant short run underpricing. A sector wise analysis of three broad sectors indicated that the financial sector had the largest IPO underpricing, particularly evident in 2007. The year-wise analysis is also documented.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 344.
Length: 20 pages
Date of creation: 2013
Date of revision:
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IPOs; JSE; underpricing; South Africa;
Find related papers by JEL classification:
- G0 - Financial Economics - - General
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
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