The Underpricing of Initial Public Offerings in the Athens Stock Exchange: Evidence from the Athens Stock Market During the period 1994-2001

Abstract

This paper investigates the underpricing of initial public offerings (IPOs) phenomenon in the Athens Stock Exchange (A.S.E.) during the period 1994-2001. Specifically, it examines the differences between the listing price of IPOs and their equilibrium market prices formed at the end of the first day and at the end of some pre-determined days during the first year of trading. The IPO puzzle on the Greek stock market is also examined according to some specific criteria such as the kind of the market and some institutional interventions that took place during the period under consideration concerning the cap on the daily price movement.