Underpricing and share performance of IPOs

A company's debut on the stock market can become a great opportunity for investors. However, with the implementation of anti-flipping mechanisms, the feasibility of taking advantage of underpricing movements is questioned, since the investor will have to postpone the sale of shares for the minimum period established in the prospectus. This study presents the valuation of shares in IPOs carried out in Brazil at the best moment in the market, which experts call the 'hot issue'. Knowing that this was a unique moment in Brazilian history, it was expected that the result would be very positive in the long term, i.e. for investors who decided to postpone selling their shares. Robust statistical analyses will present the short-, medium- and long-term results of these securities. A special read for beginners looking to learn about the capital markets and Initial Public Offering (IPO) processes.

Autorentext

Master in Business Administration, acting as coordinator and professor of several MBA programmes at various higher education institutions in Brazil. Business consultant, leading financial reorganisation processes, economic feasibility studies for investment projects and valuation. Speaker specialising in personal and business finance topics.