THE LONG RUN PERFORMANCE OF INITIAL PUBLIC OFFERING IN MALAYSIA

Abstract

Equity financing through initial public offerings (IPOs) has emerged as a critical avenue for firms seeking capital, reflecting the growing role of public markets in corporate funding. Despite high investor interest, IPOs are frequently oversubscribed, leaving many participants to acquire shares only in the aftermarket. Understanding the post-listing performance of these new issues is therefore essential for both investors and market analysts. This study investigates the one- to three-year aftermarket performance of IPOs, assessing deviations from market efficiency and exploring how performance correlates with initial returns, firm establishment, and market value at listing. Findings from this research provide insights into investment strategies, the dynamics of aftermarket trading, and the broader efficiency of equity markets.