Purpose

This study aims to investigate the effects of the intended use of initial public offerings (IPO) proceeds that is disclosed in the prospectus on IPO initial returns.

Design/methodology/approach

A sample of IPOs listed on Bursa Malaysia from 2005 to 2015 is used. The intended use of IPO proceeds is categorised into three uses, namely, growth opportunities, debt repayment and working capital. In addition to ordinary least squares regression, the study applies a more sophisticated and robust approach using the quantile regression technique.

Findings

The results show that the intended use of IPO proceeds for growth opportunities and working capital is positively associated with IPO initial returns, whereas debt repayment is negatively associated with IPO initial returns. When the intended use of IPO proceeds for growth opportunities is further expanded into capital expenditure (CAPEX) and research and development (R&D), the intended use of IPO proceeds for CAPEX is positively associated with IPO initial returns, whereas R&D is negatively associated with IPO initial returns.

Research limitations/implications

These findings suggest that intended use of IPO proceeds provides useful information about IPO initial returns and investors can use this information as guidance to make informed decisions. In addition, regulatory authorities should pay close attention to the amount allocated to each intended use of IPO proceeds as this may play a critical role in the success of a company and the economy.

Originality/value

This study gives new empirical evidence on the desire and motivations of IPO and the usefulness of designated use of IPO proceeds disclosed in the prospectus in explaining IPO initial returns.

中文翻译：

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首次公开招股所得款项及初始回报的预期用途

目的

本研究旨在调查招股说明书中披露的首次公开募股 (IPO) 收益的预期用途对 IPO 初始回报的影响。

设计/方法/方法

使用了 2005 年至 2015 年在马来西亚证券交易所上市的 IPO 样本。首次公开招股募集资金的拟用途分为增长机会、偿还债务和营运资金三种用途。除了普通的最小二乘回归之外，该研究还采用了使用分位数回归技术的更复杂和稳健的方法。

发现

结果表明，用于增长机会和营运资金的 IPO 收益的预期用途与 IPO 初始回报呈正相关，而债务偿还与 IPO 初始回报呈负相关。当 IPO 募集资金用于增长机会的预期用途进一步扩展到资本支出 (CAPEX) 和研发 (R&D) 时，IPO 募集资金用于 CAPEX 的预期用途与 IPO 初始回报呈正相关，而研发与 IPO 呈负相关初始回报。

研究限制/影响

这些调查结果表明，IPO 收益的预期用途提供了有关 IPO 初始回报的有用信息，投资者可以使用这些信息作为指导来做出明智的决定。此外，监管机构应密切关注分配给 IPO 收益的每个预期用途的金额，因为这可能对公司和经济的成功发挥关键作用。

原创性/价值

本研究为 IPO 的愿望和动机以及招股说明书中披露的 IPO 收益的指定用途在解释 IPO 初始回报方面提供了新的经验证据。