Long-run Performance of Public vs. Private Sector Initial Public Offerings in Pakistan

摘要: The private sector had its major share in the economic development of country early years independence 1950s. However, suffered a set back 1970s, when huge process nationalisation large number industrial units was undertaken by then government. Over decades these enterprises were not professionally managed and political influences management running played havoc with them consequently experiment proved to be failure. Attending weaknesses inefficiencies inherent public enterprises, privatisation systematically initiated government 1990s. Various commissions up subsequent got some momentum during present many profitable firms privatised last few years, particularly at time overall climate responsive conducive for investment. government, however, through offerings on individual-case basis. objectives this paper, therefore, are; first, what degree Privatisation Initial Public Offering’s (IPOs henceforth) IPOs differ terms under-pricing Pakistan? Second, find out reasons IPOs. Third, how can we compare long-run performance IPOs? In Pakistan, employ fixed-price method go shares are sold lots each lot consisting 100, 200, 500 or multiple lots. An investor apply only one pre-announced subscription price. case over investors, company reserves rights subscribe certain percentage amount equity. Empirical evidence Pakistan stock market is generally scarce. Especially, Pakistani Private non-existent. Sohail Nasr (2007) study, our knowledge, have been conducted who investigated 50 period 2001 2005 that subsequently listed Karachi exchange. They significant under pricing reported an average