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AuthorBadru, Bazeet O.
AuthorZaluki, Nurwati A. Ahmad
AuthorHussin, Wan Nordin Wan
Available date2018-10-21T07:05:01Z
Publication Date2016-03
Publication NameStudies in Business and economicen_US
CitationBadru, Bazeet O. Zaluki, Nurwati A. Ahmad. Hussin, Wan Nordin Wan. ANTICIPATED AND ACTUAL USE OF CAPITAL RAISED IN MALAYSIAN IPO MARKET, Studies in Business and economic, (2016), VOL19, NO1, Qatar University, 34-49.
ISSN1818-1228
URIhttp://hdl.handle.net/10576/11140
AbstractThis study investigates the anticipated and the actual use of capital raised from initial public offering (IPO) in Malaysia. The descriptive analysis shows that companies anticipate the use of capital mainly for growth opportunities (47%), working capital (27%), debt repayment (12%) and listing expenses (13%). Further analysis indicates that 54% of IPO companies have dedicated more than 50% of the amount of capital raised for growth opportunities. Very few companies planned to use the capital raised for research and development (R&D) and marketing activities. The regression results also confirm that the anticipated use of capital for R&D and marketing have no significant relationship with total amount of capital raised. In addition, a content analysis of the chairmen’s statements and the section dedicated for actual use of capital raised in the annual reports reveal that majorly 73 out of 121 companies’ exhibit changes in the anticipated use of capital raised. Therefore, this study concludes that relevant parties in the IPO process (e.g., regulators, issuers, financial intermediaries and investors) should pay close attention to the anticipated and actual use of capital raised.
Languageen
PublisherQatar University
SubjectAnticipated use,
Subjectactual use
Subjectgrowth opportunities
Subjectworking capital
Subjectdebt repayment
SubjectIPO proceeds
TitleANTICIPATED AND ACTUAL USE OF CAPITAL RAISED IN MALAYSIAN IPO MARKET
TypeArticle
Pagination34-49
Issue Number1
Volume Number19


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