The short-run market performance of initial public offerings (IPOs) indicates that the prices
are often underpriced. This is widely accepted as a universal phenomenon. To find out
whether Australian IPOs are underpriced, this paper analyzes the short-run market
performance of 254 IPOs by industry, listing year and issue year. To measure the
performance, the first-day returns are divided into the opening price primary market and the
closing price secondary market, and the post-listing returns are also examined. The study …

The short-run market performance of the initial public offerings (IPOs) indicates that the
prices are often underpriced which is widely accepted as a universal phenomenon. To find
out whether the Australian IPOs are underpriced, this paper analyses the short-run market
performance of 254 IPOs by industry, listing year and issue year over the period 2006 to
2011. To measure the performance, the first listing day returns are divided into the first day
opening price primary market and the closing price secondary market and further examine …