Abstract
The underpricing phenomenon has been well recognized in all the stock markets in the world. This study aims first to analyze the existence of underpricing issue of Moroccan IPOs, and then to measure this performance on a sample of 13 funded firms listed in Casablanca stock market from 2000 to 2018. The results show that the performance increases from 18,1% the 1 st day to reach 37% the 30 th day Keywords: private equity, IPO, underpricing, JEL Classification: G10, G11, G15, G20, G23, G24, G31, G32 DOI: 10.7176/RJFA/12-4-06 Publication date: February 28 th 2021
Highlights
Given the diversity of players, IPO operations are often carried out in a context of informational asymmetry which has direct consequences on the pricing of listed assets which often observe a discount or an underpricing
We are interested in the short-term performance of IPOs of companies financed by private equity investors by measuring its evolution during the first 30 days after listing on a sample of 13 funded firms listed in the Moroccan market between 2000 and 2018
The document will be organized as follows. first, we present a non-exhaustive literature relating to the study of the short-term stock market performance of companies listed on the stock exchange. we describe the methodology adopted and the sample before closing with the results
Summary
Given the diversity of players, IPO operations are often carried out in a context of informational asymmetry which has direct consequences on the pricing of listed assets which often observe a discount or an underpricing. The literature has focused on the impact of investors on this performance of IPOs and their certifying effect by studying their role in the reduction of the level of informational asymmetry, and the reduction of conflicts agency and in improving the performance of the IPO. We are interested in the short-term performance of IPOs of companies financed by private equity investors by measuring its evolution during the first 30 days after listing on a sample of 13 funded firms listed in the Moroccan market between 2000 and 2018
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