Research on the Influencing Factors of Investors who Participate in Book Building of Initial Public Offerings

This study is to explore the influencing factors of different types of investors who participate in book building of initial public offerings (IPO). We collected 227 IPO companies from year 2011 to May of 2015 in Taiwan as research samples. The empirical results show that book building of IPO in Taiwan, in average subscription shares of the professional investors are higher that of institutional investors, of which greater than retail investors because they have closer relationship with underwriters and more comprehensive information compared with institutional investors and retail investors. As to other influencing factors, if the company capital is higher, the participants and the average number of shares subscribed of investors will also be greater. In addition, institutional investors indeed pay more attentions on IPO company’s quality of financial statement than retail investors do, which has the same conclusion in accordance with the research findings of Neupane, Paudyal and Thapa (2014). However, the empirical results of market hot issue show different inference that retail investors was less affected by degree of market hot issue show than institutional investors.