Paper Title
Effect of Investor Demand on IPO Underpricing
Abstract
This paper analyses the IPO underpricing phenomena from investor demand perspective. It adds to the existing literature on IPO underpricing by providing a fresh evidences by using a unique data set of 2006 to 2016 that covers 339 firms. Multiple regression analysis reveals that issue price and market conditions have a negative effect on IPO initial returns and proceeds, money left on the table and IPO demand have a positive effect. Findings suggest that high demand IPOs have greater degree of underpricing.
Keywords - IPO, Underpricing, Investor Demand, Money Left on The Table.