DefinePK

Abstract

This research presents a novel exploration of the issue of underpricing of initial public offering (IPO) in Pakistan. It aims to determine the impact of four independent variables (Issue Price, Offer Size, Age, and Market Capitalization) on the dependent variable, Market-adjusted Abnormal Return. The research employs statistical analysis to observe the relationship between these variables for IPO underpricing in Pakistan. The outcomes of the study indicate that the independent variables did not have a substantial influence on the dependent variable, as the p-values associated with the independent variables were all above the threshold of 0.05. This research underscores the need for further investigation in this area to gain a more comprehensive understanding of the underpricing phenomenon of IPOs in Pakistan. This could involve the collection of more data and information, as well as the examination of additional variables and factors that may play a role in the underpricing of IPOs. By delving into these topics in greater detail, future research can help deepen our understanding of the complexities and nuances of IPO underpricing from the perspective of the Pakistani stock market. This research provides a unique starting point for further exploration of the issue of IPO underpricing in Pakistan and emphasizes the importance of continued examination of this phenomenon.