Evaluation of IPO Price－Evidence from Taiwanese Biotechnology Companies
碩士 === 國立臺灣大學 === 財務金融學研究所 === 106 === Biotechnology industry being highly professional with high proportion of intangible assets possession makes it difficult to be priced accurately. This paper target on biotechnology company Initial Public Offerings pricing. Substitute negative cash flow with cer...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2018
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| Online Access: | http://ndltd.ncl.edu.tw/handle/zzp29g |
| Summary: | 碩士 === 國立臺灣大學 === 財務金融學研究所 === 106 === Biotechnology industry being highly professional with high proportion of intangible assets possession makes it difficult to be priced accurately. This paper target on biotechnology company Initial Public Offerings pricing. Substitute negative cash flow with certain multiple of operating income, and through modeling different revenue growth rate and the multiple of operating income to get model price. Compare the model price within every condition with real offering price to see whether the model price can better converge to real trading price. This research shows biotechnology stocks average initial return 45.11%，which is significantly higher than other industries. As result, model price performance surpass offering price when the growth rate estimation range from 25% to 50% in Pharmaceutical industry and 5% to 20% in Medical equipment and Applied Biotechnology industry. All of the above indirectly prove that the model mentioned in this paper has reference value for setting the underwriting price of biotechnology industry. Model optimization or propose more appropriate pricing methods are directions recommended for further work.
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