An Empirical Study on the IPO Price of Companies Offering in Hong Kong

• Main Authors: Hui-chung Liu, 柳惠中
• Other Authors: Mei-Lun Wu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/93297992178408678943

碩士 === 東吳大學 === 企業管理學系 === 97 === This paper wants to investigate the underpricing of 185 enterprises IPO (Initial public offering) in HK during Jan.2005 to 6th June 2008, and the factors cause the underpricing. Also attempt to find out the differences between each kind of stocks in HK market, as a reference for enterprises plan to list in HK. We classify stocks in HK to three parts, Chinese state owned enterprises (H-share), Taiwanese enterprises and others, including local enterprises, foreign capital enterprises and Chinese private enterprises. The empirical result shows underpricing do exist in HK IPO’s enterprises. Average underpricing ratio is 17.54%, in which H-share is 25.09%, the Taiwanese enterprise is 8.51%, and the others are 17.09%, are significant. Also understanding the variable of P/E ratio (price/earning ratio) is positive relate with underpricing of HK IPO’s enterprises, the variable of oversubscription is positive relate with underpricing, and the variable of sponsor’s reputation is negative relate with underpricing. This paper is likely providing the information of pricing mode and IPO procedure in HK, for the enterprises plan to list in HK. Results of this paper are as follows： 1. Taiwanese enterprises list in HK, stock price is lower than H-share and others. The condition is not the managers’ original intention. 2. HK market is not good for Taiwan electronic component companies. It is hard for Taiwanese enterprises to raise fund from overseas. Hence, Taiwanese government must devise initiatives to increase Taiwanese firms’ listing in Taiwan. The purpose of this research is to provide the reference to the Taiwanese corporations which already went public in Hong Kong or plan to go public there; with a view to the Taiwanese enterprises have more information for their layout in the global capital market.