Identifying Gross Spread Pattern In Indonesian Initial Public Offering Market
- DOI
- 10.2991/icied-17.2018.41How to use a DOI?
- Keywords
- Indonesian IPO market; gross spread; gross spread pattern
- Abstract
Underpricing, which is considered as the implicit cost of going public, is not the only cost faced by issuers. Another cost of going public is gross spread or underwriting discounts (i.e., explicit cost). This paper examines the gross spread in the Indonesian IPO market over the period of 2007 to 2016. The Indonesian underwriting market is characterized by different fee setting practices which focus more on the management fee to undertake marketing campaigns or road shows to obtain information and opinion from informed and potential investors prior to setting the offering price and IPO allocation. Using the relative frequency of the mode spread, it revealed that Indonesian gross spread did not show high clustering pattern even though gross spread level of 2% emerged as the common spread
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Nur Aida Arifah Tara AU - Nada Kulendran AU - Riccardo Natoli PY - 2017/12 DA - 2017/12 TI - Identifying Gross Spread Pattern In Indonesian Initial Public Offering Market BT - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017) PB - Atlantis Press SP - 215 EP - 219 SN - 2352-5398 UR - https://doi.org/10.2991/icied-17.2018.41 DO - 10.2991/icied-17.2018.41 ID - AidaArifahTara2017/12 ER -