Comparative Perspectives On Valuation and the Impact of the IPOs

Subject Areas : Financial Knowledge of Securities Analysis

Maryam Davallou ¹ (Assistant Professor of Management and Accounting, Shahid Beheshti University, Tehran, Iran.)
Seyed Amirmahdi Hashemi ² (MA of Financial Management, Shahid Beheshti University, Tehran, Iran.)

Received: 2017-11-08 Accepted : 2018-03-04 Published : 2019-12-22

Keywords: underpricing, Comparison Theory in Behaviora, Initial Public Offering,

Abstract :

Being a general stock, is one of the progressive option for under developing companies in which in addition to attract required sources to develop activities they can easily access to financial markets such as debt markets and stock markets. In Iran according to privatization capital policy new IPOs enter to capital market that determining appropriate price to offer which is a big distress for these companies’ managers. Exact evaluation is of being importance when IPO is really high and price offering and investors don’t participate in offering process. And this matter leads to great financial or intellectual expanses to both supply investment institute and applicant company or the offering price is really lower than what is expected that the applicant company, benefit would be ignored. Therefore to determine a realistic price to offer the initial IPO which supply the success offering process would be of great importance. One of the important economical and financial matter, is to offer the stocks in a public form and to convert the proper ownership to the public one. And because of its great benefit such as new investment equipment, higher competition, tax’ exemption, and access to cheap financial resources would be welcomed to the companies.

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