Date of Graduation

5-2013

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Finance

Advisor

Rennie, Craig G.

Reader

Stamenov, Venstislav M

Abstract

The underpricing of initial public offerings leads to long-term underperformance. There are many reasons why this may happen, but for this study, the focus is on the lower offering price investors are granted for taking on the high risk of investing in an initial public offering as well as an investment bank keeping a good reputation. The stock return for M/A-Com Technology Solutions Holding, Inc. on the first day shows the underpricing. Underperformance follows after the initial public offering date for M/A-COM Technology Solutions, Inc. This is shown by the comparison of MTSI to the MTSI Index as well as by looking at the target price calculated from the comparable company analysis.

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