Abstract: The issue of IPO underpricing is regarded as an enigma of finance. Domestic and international research on the issue is based on the efficient market hypothesis, but rarely takes the market inefficiencies into account. Under the ineffective market condition IPO underpricing may result from the issuing price of primary market or the dealing price of the secondary market or a combination of these two. So the result may answer the problem from the empirical perspective.

Keyword: Initial public issuing; Underprising; Pricing efficiency