Initial Public Offerings With Reference To Emerging Arab Markets

An Initial Public Offering (IPO) is the first attempt by private firms to raise capital in a public equity market that is why it is considered of great importan ce to any growing company seeking to finance its prospective projects. This proj ect focuses on Initial Public Offerings, the general considerations that come wi th going public and its advantages and disadvantages. It provides a literature r eview on the performance of IPO's in both the short run and long run, mainly foc using on the phenomenon of underpricing. Furthermore, offering an overview of Ar ab Stock Exchanges with up to date information on the progress of the most promi nent of these exchanges. Finally presenting evidence of abnormal underpricing in the Abu Dhabi Securities Market and documenting the short run performance of th is market's latest IPO firms using Cumulative Adjusted Average Return (CAR) with benchmarks such as the markets index and matching firms to compare to.