| Author | Jayakanth, Wignarajah |
| Call Number | AIT RSPR no. SM-98-57 |
| Subject(s) | Stock exchanges--Sri Lanka--Colombo
|
| 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 |
| Abstract | This paper studies the performance of three newly issued common stocks which were
entirely offered domestically to the public during the period 1996/97. One seasoned
equity offering which includes an international offering combined with an international
book-building process was also included. The main objectives are to study the role of
underwriter, to· understand the price discovery process and to measure extent of under
pricing and evaluate the initial performance of equity issues.
The role of underwriter differs from domestic to international offerings. In international
offerings, the underwriter performs various tasks including the selling of shares to
investors which does not happen in domestically unde1written offerings.
It was found that determining a fair value is a tedious task and even the theoretical value
may not have any resemblance to the issue price. Various considerations such the timing
including the sentiment of the market would have to be considered and these factors may
push the IPO price to be on a higher or lower side of theoretical valuations.
We also found that under pricing exists. There is positive short run after market
performance of IP Os. |
| Year | 1998 |
| 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) | Gupta, J. P. |
| Examination Committee(s) | Pandey, I. M. ;Swierczek, F. W. |
| Scholarship Donor(s) | Keidanren Foundation |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1998 |