Purpose

This study aims to investigate the valuation accuracy of Malaysian initial public offerings (IPOs) by using price-multiple methods.

Design/methodology/approach

Cross-sectional data including 467 IPOs listed on the Malaysian stock exchange were used for the period of 2000–2017. This study used univariate ordinary least square (OLS) regression to analyse the relationship between IPOs’ price-multiples and comparable firms’ price-multiples. The test of valuation accuracy was conducted via computing valuation errors by segregating the sample into two groups: fixed-price IPOs and book-built IPOs. Furthermore, multiple OLS regression was used to examine the influence of IPO valuation on underpricing.

Findings

The findings of the results suggested that IPOs price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) multiples were positively related to the median P/E, P/B and P/S multiples of five comparable firms matched by industry and revenues. The P/S multiple was shown to be the most significant valuation method, specifically in book-built IPOs. The findings indicated that those firms that had a lower valuation in comparison to the comparable firms were inclined to underprice their IPOs to allure investors to subscribe IPOs. In addition, book-built IPOs that had fair valuations were inclined to generate higher initial returns for investors.

Practical implications

The findings of this study observed implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism.

Originality/value

This study attempted to explore the suitability of the valuation method to value IPOs in Malaysia.

中文翻译：

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使用价格倍增法进行 IPO 估值：来自马来西亚的证据

目的

本研究旨在通过使用价格倍增方法调查马来西亚首次公开募股 (IPO) 的估值准确性。

设计/方法/方法

使用了 2000 年至 2017 年期间包括在马来西亚证券交易所上市的 467 次 IPO 的横截面数据。本研究使用单变量普通最小二乘 (OLS) 回归分析 IPO 的价格倍数与可比公司的价格倍数之间的关系。估值准确性测试是通过将样本分为两组来计算估值误差来进行的：固定价格 IPO 和账簿建立 IPO。此外，多元OLS回归被用来检验IPO估值对抑价的影响。

发现

结果的发现表明，IPO的市盈率（P/E）、市净率（P/B）和市销率（P/S）倍数与市盈率中值正相关、按行业和收入匹配的五家可比公司的 P/B 和 P/S 倍数​​。P/S 倍数​​被证明是最重要的估值方法，特别是在账面价值的 IPO 中。调查结果表明，与可比公司相比，估值较低的公司倾向于低估其 IPO 的价格，以吸引投资者认购 IPO。此外，估值合理的簿记首次公开募股倾向于为投资者带来更高的初始回报。

实际影响

本研究的结果观察了对承销商通过考虑簿记建立机制避免错误估值问题的影响。

原创性/价值

本研究试图探讨估值方法对马来西亚 IPO 估值的适用性。