An analysis of underpricing and aftermarket performance of initial public offerings on the Alternative Exchange (AltX)

摘要: This paper reviews the international evidence of underpricing Initial Public Offerings and analyses IPO by companies listing on South African Alternative Exchange (AltX). Underpricing is indicated measuring percentage difference between initial offer price closing market first day trading. costly to pre-issue shareholders. However, studies have reported significant long run underperformance investing in listings. The objective this study test whether new listings AltX are subject measure level such as well aftermarket performance AltX.During period October 2003 September 2007, 42 firms listed AltX. findings indicate that was evident during under review with average first-day return recorded at 29%. compares other South...