Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia

This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studi...

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Main Author:	Ahmad, Norzalina
Format:	Thesis
Language:	English English
Published:	2003
Subjects:	Going public (Securities) - Malaysia.
Online Access:	http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf
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id	my-upm-ir.8178
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spelling	my-upm-ir.81782023-12-18T02:25:35Z Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia 2003-11 Ahmad, Norzalina This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studies indicate that most IPOs are generally underpriced on their first day of trading. On average GLIPOs are more underpriced than private IPOs but the difference is not statistically significant. Short and long run performances reveals that only investors that are fortunate to be allocated with new issues at the offer price are able to gain positive return. IPOs become unfavourable investment if the new shares are bought at the aftermarket price. Both short and long run performances show that there is no significant difference between GLIPOs and private IPOs. The evidence shows that GLIPOs performed better than private IPOs before the economic crisis period when market was booming and performed lower than private IPOs in post crisis. As far the GLIPOs, there was no significant difference between federal-owned and state-owned IPOs. The performance of both GLIPOs and private IPOs based on business sectors showed no significant difference in performance, except for trading and service sector where GLIPOs performed better than private IPOs. A further analysis based on firms' characteristics reveals that market volatility, ex ante risk, debt ratio, profitability ratio, asset management ratio and size of the firm together explained 38 percent of the variation in the excess returns offered by GLIPOs. However, the model explained 40 percent for private IPOs. Going public (Securities) - Malaysia. 2003-11 Thesis http://psasir.upm.edu.my/id/eprint/8178/ http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf text en public masters Universiti Putra Malaysia Going public (Securities) - Malaysia. Graduate School of Management Mohamad Ramadili, Shamsher English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
advisor	Mohamad Ramadili, Shamsher
topic	Going public (Securities) - Malaysia.
spellingShingle	Going public (Securities) - Malaysia. Ahmad, Norzalina Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
description	This study examined the relative performance of Government-linked Initial Public Offerings (GLIPOs) and Private Initial Public Offerings (IPOs) during 1984 to 2002 based on a sample of 74 newly listed companies on the Kuala Lumpur Stock Exchange. The overall results consistent with previous studies indicate that most IPOs are generally underpriced on their first day of trading. On average GLIPOs are more underpriced than private IPOs but the difference is not statistically significant. Short and long run performances reveals that only investors that are fortunate to be allocated with new issues at the offer price are able to gain positive return. IPOs become unfavourable investment if the new shares are bought at the aftermarket price. Both short and long run performances show that there is no significant difference between GLIPOs and private IPOs. The evidence shows that GLIPOs performed better than private IPOs before the economic crisis period when market was booming and performed lower than private IPOs in post crisis. As far the GLIPOs, there was no significant difference between federal-owned and state-owned IPOs. The performance of both GLIPOs and private IPOs based on business sectors showed no significant difference in performance, except for trading and service sector where GLIPOs performed better than private IPOs. A further analysis based on firms' characteristics reveals that market volatility, ex ante risk, debt ratio, profitability ratio, asset management ratio and size of the firm together explained 38 percent of the variation in the excess returns offered by GLIPOs. However, the model explained 40 percent for private IPOs.
format	Thesis
qualification_level	Master's degree
author	Ahmad, Norzalina
author_facet	Ahmad, Norzalina
author_sort	Ahmad, Norzalina
title	Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_short	Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_full	Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_fullStr	Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_full_unstemmed	Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia
title_sort	performance of initial public offerings of government linked and private companies in malaysia
granting_institution	Universiti Putra Malaysia
granting_department	Graduate School of Management
publishDate	2003
url	http://psasir.upm.edu.my/id/eprint/8178/1/GSM_2003_8_ir.pdf
_version_	1794018725143248896

Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia

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