IPO cycles in Pakistan

This study investigates the cycles that IPO issuance produce in Pakistan and the US. We did not find evidence of a lead-lag relationship between IPO volume and initial returns in Pakistan; however, this evidence holds for the US IPOs. Another important finding is that Pakistani and US IPOs are sensitive to changes in market conditions. Moreover, we report evidence of emerging hot markets in Pakistan. This study compares the results of hot IPO markets to the proceeds obtained for firms that issue their shares and finds that firms raise more capital during hot markets; however, factors like regulatory regimes have different influences over the proceeds raised across the different markets.