FACTORS AFFECTING THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS IN THE STOCK EXCHANGE OF THAILAND
Keywords:
Factor, IPO Underpricing, The Stock Exchange of ThailandAbstract
Thailand has faced significant political changes in political-economic conditions in governance from 2014-2018 due to the seizure of power by the National Council for Peace and Order (NCPO). This movement has seriously affected the national economy with may reactive economic policies launched. The situation remained until 2018 when a constituency election was held and when there were significant fluctuations in national and international economic situations. The case study company in this paper determined to register in the Stock Exchange of Thailand by initially proposing common shares or IPOs at a relatively low price for the public. The first day of trading within the stock market showed a high rate of investment return. This phenomenon seemed to be an explicit example of IPO Underpricing in the Stock Exchange of Thailand. This research has identified a series of factors that affected the IPO Underpricing of listed companies on the Stock Exchange of Thailand from 2014-2018. These factors related to the role of financial advisory, the determination method applied to common share price, and the number of Underwriters respectively. External corporate governance mechanisms also influence the decision of investors.
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