MA Thesis

US IPO Returns: Contribution of Non-Financial Factors



Published in:

Kyiv School of Economics


US IPO returns
non-financial factors

In recent years, investments in the U.S. IPO market have been gaining momentum, and if earlier, only institutional investors, wealth individuals, funds etc could participate in such events, now this market is becoming more accessible to retail investors and small funds. Interestingly, this trend is observed mainly in the CIS countries, where brokerage firms began to pool their clients' funds for consolidated participation. Investors from the U.S. and other developed countries are not so lucky, on average, the minimum required application amount in these countries is $250,000 to participate in the IPO of each individual company, not to mention the deposit and margin requirements that many brokerage companies require their clients to comply with, at the time for CIS clients, the average order required is $10,000. Thus, the opportunity to invest in the IPO market is quite limited, but it is rapidly developing all over the world as an alternative investment strategy operating with huge capital, the volumes, structure and dynamics of which will be disclosed in the next chapter.