DETERMINANTS OF UNDERPRICING OF INITIAL PUBLIC OFFERINGS REGARDING THAI COMPANIES LISTED IN THE MARKET FOR ALTERNATIVE INVESTMENT (MAI)
Keywords:
Underpricing, Initial Public Offering, Listed Companies On MAIAbstract
An Initial Public Offering (IPO) is a process in which listed companies used to raise capital for business expansion. The underpricing of IPOs is commonly found in most companies first entering the stock markets in order to attract investors. This research aims to study the factors determining the IPO underpricing of the listed companies in the Market for Alternative Investment (MAI) of Thailand. The research investigates the influencing factors, including the structures of boards of directors of the listed companies, underwriter qualifications, the company information, and financial statements of the listed companies on MAI, Thailand during 2012 – 2017 fiscal years. The results indicated that there is a positive relationship between IPO underpricing and sales growth as well as EBITDA growth. Conversely, firm size has a negative effect on IPO underpricing. These results can be applied as informative information for underwriters prior to entering the MAI, and in addition, could be helpful to the decision making process of investors regarding IPO investment.
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