| Author | Seume, Natascha |
| Call Number | AIT RSPR no.SM-03-111 |
| Subject(s) | Going public (Securities)--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-111 |
| Abstract | This paper discusses the phenomena of 'underpricing', namely that stocks which are
placed on the market for the first time are often incorrectly priced, below the market
equilibrium, even after months of research by experts.
This underpricing of IPOs is a universal practice, occurring frequently in developed as
well as developing markets. It is difficult to price IPOs correctly and even more so in
developing markets where little may be known about the firm, demand is shaky, and there
exists added market risk. Nevertheless, the degree of underpricing is generally so large
that there have to be strategic reasons for this pricing trend.
This phenomenon has been investigated, keeping the focus on the Thai market and the
circumstances surrounding the Asian Crisis of 1997. It has been found that, on average,
Thai IPOs have been underpriced both before and after the Crisis. The report also
identifies the key forces that drove this phenomenon over the past decade. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-111 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar |
| Examination Committee(s) | Singha Chiamsiri;Sununta Siengthai |
| Scholarship Donor(s) | - |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |