Identify factors affecting on under pricing of Initial Public Offering (IPO) shares of listed companies Tehran Stock Exchange

Every years, several companies around the world enter the capital market for the first time, through offering own shares to the public. It is the main problem to discover the stock price in initial offering .In the most capital markets in the world, the new IPO under
pricing has become a common phenomenon. Private companies trend to offer their shares to the public, when they receive intrinsic value of their asset and future development and growth opportunities from investors. If the price of the new shares offered to the market is determined fairly, Investors with more confidence in the capital market buy new shares. Therefore, understanding the factors affecting on IPO underpricing shares is significant. The aim of this research is to determine whether new IPO shares in Iran is underpriced or not, if so, what are the factors influencing it.
For this purpose, 34 companies with IPO are selected during 1386 – 1392 and related hypothesis were tested using the method of least squares regression .The result of the correlation between the independent variables (size of company, new offering volume, market performance, uncertainty and industry type) and dependent variables of research show a meaningful negative correlation between market performance and uncertainty reverse criteria ( Age and number of personnel)on the new IPO underpricing during the research period.