IPO Underpricing and Short-Term Performance Under the Influence of Covid-19 Fear in Thailand Stock Exchange

Abstract

Anbalagan Krishnan, Kim Tai Chow and Franco Gandolfi

Theoretical Benchmark Past researchers concluded that IPO stocks are significantly more under-priced when the listing occurred during the time when the capital market experienced shocks such as Asian Financial Crisis 1997, the Global Financial Crisis 2007, and the Covid-19 pandemic. IPO short-term performance was also negatively affected when the market is under shocks.

Method This study examines IPO under-pricing and short-term performance in Thailand’s capital market under the influence of the Covid-19 pandemic fear. A total of 168 IPO stocks in Thailand from the period 2017 to 2022 were used in this research.

Results and Conclusion The covid-19 pandemic significantly affected the under-pricing and short-term performance of Thailand IPO stocks.

Research Implications Present understanding of how IPO returns in Thailand behave when market faces significant market shocks, therefore, providing useful insight for investors and corporations when investing or issuing IPO stocks in future market shocks.

Originality/value No research has been conducted to-date on the impact of Covid-19 pandemic on the IPO stocks of Thailand capital market.

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