| Author | Nguyen Van Anh |
| Call Number | AIT RSPR no.SM-07-99 |
| Subject(s) | Going public (Securities)--Vietnam
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| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration in International Business |
| Publisher | Asian Institute of Technology |
| Abstract | The purpose of the research is to investigate the IPO process and the level of underpricing in Vietnam. This research finds that the prevailing IPO method in Vietnam is multi-units discriminatory auction which is also a part of the privatization process of state owned enterprises. Our research uses a sample of 32 companies who made IPOs during 2005-2006 and have been listed on Ho Chi Minh Stock Exchange (HOSE) or Hanoi Securities Trading Center (HASTC) by August 2007. Our findings enhance the current literature on IPO about its initial undepricing. We finds that the level of underpricing in Vietnam is 236.6% and 170% without market effects. The time elapsed between the IPO and listing is found to be on average 9 months. There is a close positive correlation between the amount of elapsed time and the level of underpricing. A negative correlation also exists between the level of subscription and the level of underpricing. However, we do not find a strong evidence for the correlation between the level of underpricing and the offering size. Despite the consolidation of investors in Vietnam, we also do not find a close relationship between the level of consolidation and the level of underpricing. |
| Year | 2007 |
| 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) | Sununta Siengthai,;Dimmitt, Nicholas J.; |
| Scholarship Donor(s) | Asian Institute of Technology;French Fellowship; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |