The Research About A Share IPO Pricing And Underpricing

With the development of our security market, the Initial Public Offering had been become a very important financing way which has been used all over the world, and it also the first step for a company to change from the private company to a public company. During the Initial Public Offering, the mot important key is about IPO pricing, which means that the price we made must be accord with the value of the listed company and at the same time, it should convey the purchasing power of investor. So the IPO pricing becomes one of the most puzzles on the international financial circle at present, every countries are exploring the rational pricing about IPO. One aspect of our study is through the analysis of our stock market through the past four years to see the main influence factors of our IPO pricing. Then combine our national stock conditions to analysis why these factors can influence our IPO pricing.During the Initial Public Offerings, the scholars are also observe three kinds of phenomena: IPO under-pricing, long-run underperformance and hot issue market. In this paper, we had also studied the IPO under-pricing of our country. We find that the IPO returns of our sample is generally high, which even up to 146%, but the IPO returns of the developed country is only about 10%. It convey us such information that our issuing market is still need some improving.On the structure of this paper, it mainly combined by five parts. The first part is the summary about the meaning of IPO and the survey of the three phenomenon of IPO. The second part showed the change steps of our country's IPO system. Thethird part discussed the various kinds of IPO pricing methods. The fourth part is the key part of our paper. In this part, we used two models to analysis the IPO pricing and the IPO under-pricing. The fifth part of our paper is the conclusion part. We draw the conclusion from the analysis of our two models of the fourth part and then give the purpose of our country's Initial Public Offerings, and wish it can be alleviated the serious phenomenon of under-pricing, and can pricing the stock price more reasonable.