Coefficient of investor demand
The coefficient of investor demand (INVDEM) is positively significant. The results suggest that state-owned IPO signals quality and investors have the confidence of better prospects would maximize their wealth from the investment; consequently, a rise in demand significantly influences the flipping of an IPO on the first, third and fifth day of listing. The result is consistent with Sapian et al. (2012) and Abdul-Rahim et al. (2013). The investor sentiments (INVSEN) positively affect flipping activity, but it is insignificant. The outcome implied that a high average return of the three most recent new IPOs has caused in diverse opinions on following new IPO valuation. Alternatively, investors’ decision to flip a new offer is associated with past new IPO performance. It reveals that state-owned IPOs offers during the political government era have high demand, which causes flipping.