Abstract
The present study examines the short-term performance of 64 listed Initial Public Offerings (IPOs) in Pakistan’s stock exchange for the period of January 2009 to June 2018. The present study has employed six explanatory variables to examine the determinants of underpricing for the 1 st, 7th, 15th and 30th trading day. These are the offer price, offer volume, investor sentiment, hot and cold issues, executive directors and nonexecutive directors. The findings show that in the short term, only two determinants, the offer price and issue size, indicate a significant effect on the underpricing of the IPO respectively. The results show that on a listing day, underpricing is 45.6% and if the investor holds shares till the end of the 30thtrading day, they can earn abnormal returns of 51.48% respectively. The study implicates that on average, IPOs are under-priced in Pakistan, and the degree of underpricing varies according to the number of trading days.

Mujeeb Iqbal, Fauzia Mubarik. (2019) Analysis of the Determinants of the Initial Public Offering Valuation: Evidence from Pakistan’s Stock Exchange, NUML International Journal of Business & Management, Volume 14, Issue 2.
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