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Durga Prasad Samontaray

Associate Professor

Associate Professor, Department of Finance

كلية إدارة الأعمال
College of Business Administration, Building 67, Second Floor, Office No. S36

ARE IPOS UNDERPRICED? EMPIRICAL EVIDENCE FROM SAUDI ARABIA

Underpricing of initial public offerings (IPOs) is a common phenomenon that widely studied over many periods and a broad range of countries. This paper examines the extent of underpricing of IPOs in Saudi Arabia by using the data of 44 IPOs listed on the Saudi Stock Exchange from January 2010 till October 2021. We found that IPOs on average were underpriced by 49.4%. The stepwise multiple regression results showed that the number of individual subscribers, the level of over-subscription by individuals, and the firm size have a significant relationship with IPO returns. The outcomes are hence consistent with the prediction of ex-ante uncertainty and the winners’ curse hypothesis.
Keywords: Initial Public Offerings (IPOs), Underpricing, Offer Risk, Investor Sentiment, Listing Fee, Market Volatility

Publication Work Type
Research Article
Publisher Name
Corporate Ownership and Control (VIRTUS INTERPRESS)
Volume Number
20
Issue Number
2
Pages
156-165
more of publication
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by Kaushik Bhattacharjee, Durga Prasad Samontaray
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Published in:
IVEY
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by Atul Bansal, Durga Prasad Samontaray, Rahul Kumar
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Published in:
Copernican Journal of Finance & Accounting
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Underpricing of initial public offerings (IPOs) is a common phenomenon that widely studied over many periods and a broad range of countries. This paper examines the extent of underpricing of IPOs…

by Durga Prasad Samontaray, Abdullah Saud Al Zuwidi
2023
Published in:
Corporate Ownership and Control (VIRTUS INTERPRESS)