Initial and Long-Run Performance of Mining Ipos in Australia

31 Pages Posted: 23 Oct 2000

See all articles by Janice C. Y. How

Janice C. Y. How

Queensland University of Technology; Financial Research Network (FIRN)

Multiple version iconThere are 2 versions of this paper

Date Written: undated

Abstract

This paper examines the initial and long-run performance of 130 Australian mining IPOs issued from 1979 to 1990. The results show an average underpricing of 107.18%, significantly higher than that previously documented for industrial firms. The time lapse between prospectus registration and listing, and the state of the market when the IPO is issued are the main explanatory variables for the observed underpricing. Contrary to the existing evidence, mining IPOs in Australia, on average, do not appear to significantly underperform the market in the long-run. The results show that delay in listing is significantly related to the long-run performance, with some evidence of a curvilinear relationship between underpricing and the one-year and two-year share returns.

Keywords: Mining IPOs, Underpricing, Long-Run Performance

JEL Classification: G12, G14, G32

Suggested Citation

How, Janice C. Y., Initial and Long-Run Performance of Mining Ipos in Australia (undated). Available at SSRN: https://ssrn.com/abstract=224419 or http://dx.doi.org/10.2139/ssrn.224419

Janice C. Y. How (Contact Author)

Queensland University of Technology ( email )

2 George Street
Brisbane, Queensland 4000
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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