Significance of Board of Listing And Type of Issue on the Under-Pricing and After-Market Performance of Malaysian IPOs

Abstract

presents the short-term and long-term performances of all new issues listed on both the ‘and the Second Board of the Kuala Lumpur Stock Exchange (KLSE) from 1991 to 1995. this study finds an average initial return and an average over-subscription ratio which ally lower than the ones reported by the previous studies. Furthermore, we find that coefficients between initial returns and over-subscription ratios are significant, especially issue of type 2, offer for sale. We also find that initial returns are significantly greater than tive longer-term returns, and there is no significant difference in the initial returns among of issue compared. Finally, in general, we find that the mean initial return has no significant with the average annual return over the longer-term periods.