The Short-Run Performance of IPOs of Privately Owned and Publicly Owned Firms: A Note from Australia

6 Pages Posted: 8 Jul 2015

See all articles by Adam Steen

Adam Steen

Monash University

Petko S. Kalev

La Trobe Business School

Keith Turpie

Swinburne University of Technology

Date Written: July 7, 2015

Abstract

This article builds on an earlier study by Choi and Nam (1998) on the initial price performance of Public Sector Initial Public Offerings PIPOs in 30 countries. They report that, in general, PIPOs are more underpriced than private sector IPOs. Our study of the Australian market suggests the opposite is the case. The difference in the underpricing between their study and the evidence presented here is most likely due to the characteristics of Australian PIPOs. These characteristics include the tender process adopted, the extensive marketing employed and the dominant position of many of the issuers.

Keywords: initial public offerings; initial return; privatization

JEL Classification: G32

Suggested Citation

Steen, Adam and Kalev, Petko S. and Turpie, Keith, The Short-Run Performance of IPOs of Privately Owned and Publicly Owned Firms: A Note from Australia (July 7, 2015). Multinational Finance Journal, Vol. 5, No. 2, p. 149-154, 2001, Available at SSRN: https://ssrn.com/abstract=2627626

Adam Steen (Contact Author)

Monash University ( email )

23 Innovation Walk
Wellington Road
Clayton, Victoria 3800
Australia

Petko S. Kalev

La Trobe Business School ( email )

Department of Economics and Finance
Donald Whitehead Building: Level 3, DWB313
Bundoora, Victoria 3086
Australia
+613 9479 6285 (Phone)
+613 9479 1654 (Fax)

HOME PAGE: http://www.latrobe.edu.au/business/about/staff/profile?uname=PKalev

Keith Turpie

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

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