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An Empirical Investigation into the Listing Performance of Indonesian IPOs


Affiliations
1 Sr. Professor, Finance and Accounts, FORE School of Management, ‘Adhitam Kendra’, B-18, Qutub Institutional Area, New Delhi - 110 016, India

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This paper has been written with the objectives of providing insights into the demographic characteristics of 2018 IPO market in Indonesia, and investigating and analyzing the listing performance of IPOs floated during 2018 in the country so as to expand the existing knowledge base on the subject and enable the various stakeholders associated with IPOs to take more informed decisions and thus contribute to better development of the IPO market in Indonesia. Analysis of listing performance of 2018 IPOs assumed further significance since in the history of the Indonesian capital market, the year 2018 witnessed the largest number of IPOs, highest number of shares issued, and highest amount of funds raised. It is really remarkable that out of 57 IPOs, only 4 returned listing loss ; whereas, 53 returned gains. Thus, a very high 93% of IPOs were underpriced. Only 7% of them were overpriced. All the gains and losses put together, the investors earned a very high return of 26% on the listing day itself.

Keywords

IPO, IPO Price, IDR, IDX, Listing Price, Listing Gain (Loss), Par Value, RP, Share Premium, Stock.

JEL Classification : G11, G15, M10, N25.

Paper Submission Date : February 13, 2020 ; Paper Sent Back for Revision : February 20, 2020 ; Paper Acceptance Date : March 1, 2020.
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  • An Empirical Investigation into the Listing Performance of Indonesian IPOs

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Authors

Ambrish Gupta
Sr. Professor, Finance and Accounts, FORE School of Management, ‘Adhitam Kendra’, B-18, Qutub Institutional Area, New Delhi - 110 016, India

Abstract


This paper has been written with the objectives of providing insights into the demographic characteristics of 2018 IPO market in Indonesia, and investigating and analyzing the listing performance of IPOs floated during 2018 in the country so as to expand the existing knowledge base on the subject and enable the various stakeholders associated with IPOs to take more informed decisions and thus contribute to better development of the IPO market in Indonesia. Analysis of listing performance of 2018 IPOs assumed further significance since in the history of the Indonesian capital market, the year 2018 witnessed the largest number of IPOs, highest number of shares issued, and highest amount of funds raised. It is really remarkable that out of 57 IPOs, only 4 returned listing loss ; whereas, 53 returned gains. Thus, a very high 93% of IPOs were underpriced. Only 7% of them were overpriced. All the gains and losses put together, the investors earned a very high return of 26% on the listing day itself.

Keywords


IPO, IPO Price, IDR, IDX, Listing Price, Listing Gain (Loss), Par Value, RP, Share Premium, Stock.

JEL Classification : G11, G15, M10, N25.

Paper Submission Date : February 13, 2020 ; Paper Sent Back for Revision : February 20, 2020 ; Paper Acceptance Date : March 1, 2020.

References





DOI: https://doi.org/10.17010/ijrcm%2F2020%2Fv7i1%2F153628