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http://dx.doi.org/10.13106/jafeb.2022.vol9.no5.0409

Factors Affecting the Volatility of Post-IPO Stock Prices: Evidence from State-Owned Enterprises in Hanoi Stock Exchange  

LE, Phuong Lan (Faculty of Banking and Finance, Foreign Trade University)
THACH, Duc Khoi (Actuarial Department, Prudential Vietnam Assurance)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.5, 2022 , pp. 409-419 More about this Journal
Abstract
This paper examines the post-IPO price volatility in the first trading days after the IPO of SOEs that carry out equitization, on a sample of 76 IPOs on the Hanoi Stock Exchange (Vietnam) in the period 2013-2018. Oversubscription rate, firm size, issuance size, internal equity ownership, and listing delay are all factors that influence IPO price volatility in a primitive stock market. The results showed that the average initial market-adjusted return for the first three trading days was -11.95%; -9.58% and -7.29% and the level of price volatility is related to the rate of oversubscription and company size. Issuance price, issuance size, internal equity holdings, and listing delay do not seem to contribute significantly to post-IPO share prices. Individual investors based their valuation on information released during and after the IPO. In general, the number of IPOs that yield positive and negative returns in the first trading days is about the same, indicating that the two phenomena of undervaluation and overvaluation still occur in the process of valuing shares of Vietnamese SOEs for IPOs.
Keywords
Post-IPO Price Volatility; IPO Undervaluation; IPO Overvaluation; IPO Valuation;
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