The purpose of this paper is to examine the effects of pricing mechanism on initial public offerings (IPOs) oversubscription in Pakistan.,This study used cross-sectional data to analyse 85 listed IPOs on the Pakistan stock exchange during the period of 2000-2017 to assess hypotheses related to influential determinants of IPO oversubscription. Accordingly, ordinary least square, robust regression and quantile regression approaches were applied in this study to evaluate the factors that influenced oversubscription.,The outcome displayed pricing mechanism is negatively significant with an oversubscription of IPOs. This indicates firms using the fixed-price mechanism signalled higher information asymmetry and uncertainty in their value. Thus, investors are aware that they will be offset with underpricing, and it is expected the demand will be higher for the particular IPOs.,This study is entirely focused on the available information of prospectus that should not be ignored by potential investors at the time of subscription of IPO. Therefore, the study contributes to extending the available literature in signalling theory whereby issuers should consider using the book-building pricing mechanism in enhancing the efficiency of the IPO offer price during the listing.,This paper provides evidence for the determinants of the IPO oversubscription.

中文翻译：

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定价机制对IPO超额认购的影响：来自巴基斯坦证券交易所的证据

本文的目的是研究定价机制对巴基斯坦首次公开发行（IPO）超额认购的影响。本研究使用横断面数据分析了2000年至2017年期间巴基斯坦证券交易所85家上市的IPO。评估与IPO超额认购的决定因素有关的假设。因此，本研究采用普通最小二乘，鲁棒回归和分位数回归方法来评估影响超额认购的因素。结果显示，定价机制对首次公开发行股票超额认购具有负面影响。这表明使用固定价格机制的企业表示其信息不对称性和价值存在较高的不确定性。因此，投资者意识到他们会被定价偏低所抵消，这项研究完全集中在招股说明书的可用信息上，潜在的投资者在认购IPO时不应忽略这些信息。因此，该研究有助于扩展信号理论的现有文献，使发行人应考虑使用簿记定价机制来提高上市期间IPO发行价格的效率。本文为IPO超额认购的决定因素提供了证据。