Title: The role of the ex ante uncertainty in the pre-listing IPO process: evidence from the Tunisian stock market

Authors: Ahmed Jeribi; Anis Jarboui

Addresses: Faculty of Economic Sciences and Management of Sfax-Tunisia, Sfax University, BP 1013, Tunisia ' Faculty of Economic Sciences and Management of Sfax-Tunisia, Sfax University, BP 1013, Tunisia

Abstract: Using a sample of 33 IPOs listed on the Tunisian Stock Exchange (TSE) from 1994 to 2012, we study the role of the ex ante uncertainty in the pre-listing IPO process. We find that the higher ex ante uncertainty does not always lead to a high discount level which is not a credible signal for investors. We also find that the level of uncertainty and information asymmetry surrounding the IPO firms is the most important determinant of the investors' demand during the subscription period.

Keywords: initial public offerings; pre-listing IPOs; ex ante uncertainty; deliberate price discounting; investor demand; Tunisia; stock markets; information asymmetry.

DOI: 10.1504/IJEBR.2015.070275

International Journal of Economics and Business Research, 2015 Vol.10 No.1, pp.46 - 65

Received: 13 Sep 2014
Accepted: 16 Dec 2014

Published online: 20 Jun 2015 *

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