Abstract: This study examines IPOs’ performance on the Market Alternative for Investment (MAI), Thailand. All 123 IPO firms to be listing on the MAI between 2003 and 2015 (January-June) were included in a sample to be assessed employing several metrics. The non-adjusted and market-adjusted models, three types of calculations and a significant test were applied to measure the short-run initial returns. The results are consistent with those reported by previous studies and it is concluded that the Thai IPOs’ underpricing is significant and substantial positive. Explicitly, the IPO stocks largely out-perform the market. For the ranking analyses using the MAI index (method1) and the MAI index (method2), the results are robust and suggest that roughly 20-25% of the top twenty best out-performers produce the initial returns more than 200% superior than the market; meanwhile about 75-80% create the initial returns more than 150% larger than the market.
Keywords: IPO performance; underpricing; initial return; short-run return; Thailand.
Title: Short-Term Initial Returns
Author: Amporn Soongswang
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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