Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia

In Malaysia, IPO offering price setting is still lack of transparency and remains puzzling to investors. Investors are left with many unanswered questions. Investors have no idea on the fair value of the IPO firms and whether the IPOs are really undervalued and to what extent. Successful IPO subscri...

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Bibliographic Details
Main Author:	Murugasu, Thangarajah @ M.Thiyagarajan
Format:	Thesis
Published:	2014
Subjects:	HG4001-4285 Finance management Business finance.
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id	my-mmu-ep.6280
record_format	uketd_dc
spelling	my-mmu-ep.62802016-01-19T08:11:22Z Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia 2014-07 Murugasu, Thangarajah @ M.Thiyagarajan HG4001-4285 Finance management. Business finance. In Malaysia, IPO offering price setting is still lack of transparency and remains puzzling to investors. Investors are left with many unanswered questions. Investors have no idea on the fair value of the IPO firms and whether the IPOs are really undervalued and to what extent. Successful IPO subscribers are neither guided on whether they should take the capital gain on the first trading day nor remain holding the shares. For unsuccessful IPO subscribers, they do not know whether it is still profitable to purchase the IPOs on or after the First-Day of listing on the secondary market. All these questions can be answered to some extent if the fair value of the IPO firm can be estimated. The aim of this study is to develop an investment strategy for IPO investors to make various investment decisions such as whether to subscribe for IPOs, to buy, sell, or hold the shares on the secondary market. To further aid the investors especially retail investors this study has developed investment algorithm. The investment algorithm will be useful to make various investment decisions such as whether to subscribe for IPOs, buy, sell, or hold on first-Day, first-Week and first-Month closing price. Two techniques, Multiple Linear Regression (MLR) and Comparable Firm Approach (CFA), were employed to arrive at a close enough estimation of IPO firms’ fair values from 1995 to 2008. The first-day, first-week, and first-month closing prices for the newly listed IPO firms were also estimated based on the MLR techniques only. 2014-07 Thesis http://shdl.mmu.edu.my/6280/ http://library.mmu.edu.my/diglib/onlinedb/dig_lib.php phd doctoral Multimedia University Faculty of Management
institution	Multimedia University
collection	MMU Institutional Repository
topic	HG4001-4285 Finance management Business finance.
spellingShingle	HG4001-4285 Finance management Business finance. Murugasu, Thangarajah @ M.Thiyagarajan Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
description	In Malaysia, IPO offering price setting is still lack of transparency and remains puzzling to investors. Investors are left with many unanswered questions. Investors have no idea on the fair value of the IPO firms and whether the IPOs are really undervalued and to what extent. Successful IPO subscribers are neither guided on whether they should take the capital gain on the first trading day nor remain holding the shares. For unsuccessful IPO subscribers, they do not know whether it is still profitable to purchase the IPOs on or after the First-Day of listing on the secondary market. All these questions can be answered to some extent if the fair value of the IPO firm can be estimated. The aim of this study is to develop an investment strategy for IPO investors to make various investment decisions such as whether to subscribe for IPOs, to buy, sell, or hold the shares on the secondary market. To further aid the investors especially retail investors this study has developed investment algorithm. The investment algorithm will be useful to make various investment decisions such as whether to subscribe for IPOs, buy, sell, or hold on first-Day, first-Week and first-Month closing price. Two techniques, Multiple Linear Regression (MLR) and Comparable Firm Approach (CFA), were employed to arrive at a close enough estimation of IPO firms’ fair values from 1995 to 2008. The first-day, first-week, and first-month closing prices for the newly listed IPO firms were also estimated based on the MLR techniques only.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Murugasu, Thangarajah @ M.Thiyagarajan
author_facet	Murugasu, Thangarajah @ M.Thiyagarajan
author_sort	Murugasu, Thangarajah @ M.Thiyagarajan
title	Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
title_short	Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
title_full	Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
title_fullStr	Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
title_full_unstemmed	Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia
title_sort	exploring initial public offerings (ipos) investment strategies in malaysia
granting_institution	Multimedia University
granting_department	Faculty of Management
publishDate	2014
_version_	1747829620213809152

Exploring Initial Public Offerings (IPOs) investment strategies in Malaysia

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