The Factors Affecting on IPO Return in Thai Stock Market

An alternative for a short-term investment, IPO return is one of the most attractive investments in every stock market. In the past Stock Exchange of Thailand, the rate of stock listing or IPO issue is less when compare to the other markets and the number of overpriced firms less than number of under priced firms. After the crisis period in 1997, the number of IPO issues is reduced to almost zero for a few years. Then SET has implemented the new regulation and procedure to control all listed and will be listed companies and also pursue them to be corporate governance. Nowadays 2004, the rate of stock listing increase to almost one a week, in the other words there is an IPO issued every week and the number of positive return IPO also increase. This study reported 14% to 24% IPO Returns in Thai stock market in given period. This figure is same with international Stock markets. In addition to that the factors affect the initial return of IPOs also disclosed. By using the publish data that can be acquired by general investor, we investigate those data which have relations to the return of IPOs. Finally, develop and test the initial return prediction model.