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

Ahmad, Norzalina (2003) Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia. Masters thesis, Universiti Putra Malaysia.

[img] PDF


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.

Item Type:Thesis (Masters)
Subject:Going public (Securities) - Malaysia.
Chairman Supervisor:Professor Shamsher Mohamad Ramadili, PhD
Call Number:GSM 2003 8
Faculty or Institute:Graduate School of Management
ID Code:8178
Deposited By: Nurul Hayatie Hashim
Deposited On:19 Oct 2010 03:48
Last Modified:30 May 2012 08:48

Repository Staff Only: Edit item detail

Document Download Statistics

This item has been downloaded for since 19 Oct 2010 03:48.

View statistics for "Performance of Initial Public Offerings of Government Linked and Private Companies in Malaysia "

Universiti Putra Malaysia Institutional Repository

Universiti Putra Malaysia Institutional Repository is an on-line digital archive that serves as a central collection and storage of scientific information and research at the Universiti Putra Malaysia.

Currently, the collections deposited in the IR consists of Master and PhD theses, Master and PhD Project Report, Journal Articles, Journal Bulletins, Conference Papers, UPM News, Newspaper Cuttings, Patents and Inaugural Lectures.

As the policy of the university does not permit users to view thesis in full text, access is only given to the first 24 pages only.