Share allocations and performance of KLSE second board IPOs

Janice How; Ranko Jelic; Brahim Saadouni; Peter Verhoeven

doi:10.1016/j.pacfin.2006.09.002

Share allocations and performance of KLSE second board IPOs

Janice How
, Ranko Jelic
, Brahim Saadouni
, Peter Verhoeven

A&F Accounting & Finance

Research output: Contribution to journal › Article › peer-review

Abstract

We analyze share allocations in the Malaysian IPO market, which provide a unique instrument of economic policy for wealth redistribution amongst different ethnic groups. For a sample of Second Board IPOs, we find that Bumiputera investors and the Malaysian public receive almost an equal allocation and make similar profits per issue. However, institutional Bumiputera investors are allocated a significantly smaller proportion of the most underpriced issues and a significantly higher proportion of overpriced issues. IPOs with a higher share allocation to retail Bumiputera investors perform best in both the short and long run. © 2006 Elsevier B.V. All rights reserved.

Original language	English
Pages (from-to)	292-314
Number of pages	22
Journal	Pacific Basin Finance Journal
Volume	15
Issue number	3
DOIs	https://doi.org/10.1016/j.pacfin.2006.09.002
Publication status	Published - Jun 2007

Keywords

Bumiputera
IPOs
Long run performance
Share allocations
Underpricing
Wealth redistribution

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.pacfin.2006.09.002

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title = "Share allocations and performance of KLSE second board IPOs",

abstract = "We analyze share allocations in the Malaysian IPO market, which provide a unique instrument of economic policy for wealth redistribution amongst different ethnic groups. For a sample of Second Board IPOs, we find that Bumiputera investors and the Malaysian public receive almost an equal allocation and make similar profits per issue. However, institutional Bumiputera investors are allocated a significantly smaller proportion of the most underpriced issues and a significantly higher proportion of overpriced issues. IPOs with a higher share allocation to retail Bumiputera investors perform best in both the short and long run. {\textcopyright} 2006 Elsevier B.V. All rights reserved.",

keywords = "Bumiputera, IPOs, Long run performance, Share allocations, Underpricing, Wealth redistribution",

author = "Janice How and Ranko Jelic and Brahim Saadouni and Peter Verhoeven",

year = "2007",

month = jun,

doi = "10.1016/j.pacfin.2006.09.002",

language = "English",

volume = "15",

pages = "292--314",

journal = "Pacific Basin Finance Journal",

publisher = "Elsevier BV",

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TY - JOUR

T1 - Share allocations and performance of KLSE second board IPOs

AU - How, Janice

AU - Jelic, Ranko

AU - Saadouni, Brahim

AU - Verhoeven, Peter

PY - 2007/6

Y1 - 2007/6

N2 - We analyze share allocations in the Malaysian IPO market, which provide a unique instrument of economic policy for wealth redistribution amongst different ethnic groups. For a sample of Second Board IPOs, we find that Bumiputera investors and the Malaysian public receive almost an equal allocation and make similar profits per issue. However, institutional Bumiputera investors are allocated a significantly smaller proportion of the most underpriced issues and a significantly higher proportion of overpriced issues. IPOs with a higher share allocation to retail Bumiputera investors perform best in both the short and long run. © 2006 Elsevier B.V. All rights reserved.

AB - We analyze share allocations in the Malaysian IPO market, which provide a unique instrument of economic policy for wealth redistribution amongst different ethnic groups. For a sample of Second Board IPOs, we find that Bumiputera investors and the Malaysian public receive almost an equal allocation and make similar profits per issue. However, institutional Bumiputera investors are allocated a significantly smaller proportion of the most underpriced issues and a significantly higher proportion of overpriced issues. IPOs with a higher share allocation to retail Bumiputera investors perform best in both the short and long run. © 2006 Elsevier B.V. All rights reserved.

KW - Bumiputera

KW - IPOs

KW - Long run performance

KW - Share allocations

KW - Underpricing

KW - Wealth redistribution

U2 - 10.1016/j.pacfin.2006.09.002

DO - 10.1016/j.pacfin.2006.09.002

M3 - Article

VL - 15

SP - 292

EP - 314

JO - Pacific Basin Finance Journal

JF - Pacific Basin Finance Journal

IS - 3

ER -

Share allocations and performance of KLSE second board IPOs

Abstract

Keywords

UN SDGs

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