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Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia

This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studi...

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Main Author: Ahmad, Norzalina
Format: Thesis
Language:English
English
Published: 2003
Subjects:
Going public (Securities) - Malaysia.
Online Access:http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf
http://psasir.upm.edu.my/id/eprint/8178/
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spelling my.upm.eprints.81782023-12-18T02:25:35Z http://psasir.upm.edu.my/id/eprint/8178/ Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia Ahmad, Norzalina This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studies indicate that most IPOs are generally underpriced on their first day of trading. On average GLIPOs are more underpriced than private IPOs but the difference is not statistically significant. Short and long run performances reveals that only investors that are fortunate to be allocated with new issues at the offer price are able to gain positive return. IPOs become unfavourable investment if the new shares are bought at the aftermarket price. Both short and long run performances show that there is no significant difference between GLIPOs and private IPOs. The evidence shows that GLIPOs performed better than private IPOs before the economic crisis period when market was booming and performed lower than private IPOs in post crisis. As far the GLIPOs, there was no significant difference between federal-owned and state-owned IPOs. The performance of both GLIPOs and private IPOs based on business sectors showed no significant difference in performance, except for trading and service sector where GLIPOs performed better than private IPOs. A further analysis based on firms' characteristics reveals that market volatility, ex ante risk, debt ratio, profitability ratio, asset management ratio and size of the firm together explained 38 percent of the variation in the excess returns offered by GLIPOs. However, the model explained 40 percent for private IPOs. 2003-11 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf Ahmad, Norzalina (2003) Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia. Masters thesis, Universiti Putra Malaysia. Going public (Securities) - Malaysia. English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
topic Going public (Securities) - Malaysia.
spellingShingle Going public (Securities) - Malaysia.
Ahmad, Norzalina
Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
description This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studies indicate that most IPOs are generally underpriced on their first day of trading. On average GLIPOs are more underpriced than private IPOs but the difference is not statistically significant. Short and long run performances reveals that only investors that are fortunate to be allocated with new issues at the offer price are able to gain positive return. IPOs become unfavourable investment if the new shares are bought at the aftermarket price. Both short and long run performances show that there is no significant difference between GLIPOs and private IPOs. The evidence shows that GLIPOs performed better than private IPOs before the economic crisis period when market was booming and performed lower than private IPOs in post crisis. As far the GLIPOs, there was no significant difference between federal-owned and state-owned IPOs. The performance of both GLIPOs and private IPOs based on business sectors showed no significant difference in performance, except for trading and service sector where GLIPOs performed better than private IPOs. A further analysis based on firms' characteristics reveals that market volatility, ex ante risk, debt ratio, profitability ratio, asset management ratio and size of the firm together explained 38 percent of the variation in the excess returns offered by GLIPOs. However, the model explained 40 percent for private IPOs.
format Thesis
author Ahmad, Norzalina
author_facet Ahmad, Norzalina
author_sort Ahmad, Norzalina
title Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_short Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_full Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_fullStr Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_full_unstemmed Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_sort performance of initial public offerings of government linked and private companies in malaysia
publishDate 2003
url http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf
http://psasir.upm.edu.my/id/eprint/8178/
_version_ 1787137169155948544
score 13.244745

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