Did the COVID-19 pandemic (really) positively impact the IPO Market? An Analysis of information uncertainty

Does Intended Use Influence the Initial Returns of Initial Public Offering (IPO) Amidst Economic Crisis of Covid-19

“…There was a slowdown in the number of IPOs in all sectors during the pandemic period as all industries are seriously affected by the lockdown measure. This is concurrent with study byBaig & Chen (2021) that reported the IPO market could have impacted badly during Covid-19 due to information uncertainty. From the final sample of 65 companies, 53 companies are Shariah-compliant IPOs while another 12 are conventional IPOs.…”

“…It shows a positive investment sentiment in general. According to Baig & Chen (2021), pandemic indices are positively related with information uncertainty as such IPOs after the pandemic declaration experienced significantly greater under-pricing. Throughout the samples, 7 out of 65 companies are in the hi-tech industry.…”

“…No IPOs in high-tech companies issued during the MCO period. This could be issuing stocks in the high-tech industry that are more volatile and the outcome is uncertain (Baig & Chen, 2021). .916 __________________________________________________________________________ We conducted pairwise correlation as an overview of the relationship as depicted in Table 4.…”

“…Previous empirical research described that the initial returns are higher for IPO companies in high-tech industries (Leone et al 2007;Chung et al 2005;Beatty & Ritter 1986). According to Baig & Chen (2021), following the COVID-19, businesses in the high-tech industry face more under-pricing and post-IPO volatility. However, Ahmad-Zaluki & Badru (2020) opposed the previous research findings and found that the high-tech industry had a negative but substantial correlation with IPO early returns.…”

The Global Equity Market Reactions of the Oil & Gas Midstream and Marine Shipping Industries to COVID-19: An Entropy Analysis

“…With regards to the equity market reactions, Kamal et al (2021) [5] applied an event study methodology to assess the market reactions of selected shipping stocks (listed on the New York Stock Exchange (NYSE)) to several COVID-related news of optimistic and pessimistic nature. They found positive market reactions for marine transportation equities to the announcement of optimistic events, such as approval of the first COVID-19 vaccine or the proposal of economic stimulus plans, and adverse market reactions to pessimistic news [11][12][13][14][15][16][17][18][19]. However, the number of such investigationslinking COVID-19 and transportation equities-seem to be quite limited, compared to the existing bulk literature on the COVID-19 impacts on global equity markets [20][21][22][23][24][25][26][27][28].…”