Volume 4, Numbers 1 & 2 / March/June , Pages 5-153
An Analysis of Factors Affecting Investor Demand for Initial Public Offerings in Singapore
Multinational Finance Journal, 2000, vol. 4, no. 1&2, pp. 133-153
Li Li Eng , The National University of Singapore, Singapore    Corresponding Author
Hwee Shan Aw , The National University of Singapore, Singapore

Abstract:
This article investigates the impact of fundamentals of initial public offering (IPO) firms on two categories of investors, large and small investors. In the decision to purchase IPOs, the demand by large investors is positively associated with earnings yield, firm size and underpricing, and negatively associated with book-to-market ratio. Large investor demand is higher for issues denominated in the local currency (Singapore dollars) than issues denominated in foreign currencies. In contrast, the demand by small investors is negatively associated with earnings yield, firm size and underpricing. Small investor demand is also lower for issues denominated in Singapore dollars than issues denominated in foreign currencies

Keywords : initial public offerings; fundamentals; small investors; large investors
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