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Article

«Народные» IPO на растущих рынках капитала

Кокорев Д. А., Чиркова Е. В.

In our research we analyze main effects which accompany IPO on emerging markets. We focus the attention on such countries as Russia, India, China, Brazil, Poland, Singapore, Malaysia, Egypt and other emerging markets. There are 161 placements in our sample which took place in 11 emerging markets. The major interest involves the effects accompanying privatization of state companies through IPO and how much retail investors win from participating in IPOs of the companies from emerging markets. We estimate the dependence of underpicing or initial return IPO (the price change measured from the offering price to the market price on the first trading day) and long-run IPOs performance from such factors as ownership of shares before placing (a state ownership/private property), origin of the company, shares allocation (retail/institutional investors), etc. Our research has revealed that retail IPO have the greatest initial return, than usual IPO. The hypothesis about the lower long-term yield of such placements in comparison with yield of the market is thus confirmed. Surprisingly, IPOs of the state companies have bigger underpricing (allowing investors to earn more in the first days of the quotations), than private companies IPO. However long-run abnormal return is also positive (at usual IPO it is negative in average) which shows that privatization IPO is a separate phenomenon. Country specific characteristics matter in retail IPO and sometimes the differences are crucial. Most of the peculiarities depend on the distinctions in institutional environment of the countries and the level of retail investors' participation in IPO. Moreover, countries authorities set various purposes at privatization of the state companies which could also affect IPO performance.