An Analysis on the Performance of IPO – A Study on the Karachi Stock Exchange of Pakistan
Miss Shama Sadaqat, Muhammad Farhan Akhtar, Khizer Al

Abstract
This study is an analysis of the performance of IPOs (Initial Public Offerings) listed on Karachi Stock Exchange (KSE) during last decade (a period from 2000-2009). This study is an attempt to reveal that just like other countries, Pakistani IPO market also reward to investors with some positive returns. Un-even performance of KSE is witnessed specially in the last decade. In order to measure the short run performance of IPOs capturing this un-even performance, the data of IPOs are divided into three different states of economy: Normal, Boom & Recession. In this study, KSE index is used as proxy to represent different states of economy of Pakistan. Normal (state of economy): Sample period from January 1, 2000 to August 31, 2005. Boom (state of economy): Sample period from September 1, 2005 to April 30, 2008. Recession (state of economy): Sample period from May 1, 2008 to April 30, 2009. The wealth relative model is also employed to capture the effect of these abnormal returns under different state of economy. The sector-wise analysis demonstrates that some sectors outperform even in recession state of economy. The year-wise analysis of IPOs is also documented.

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