The Application of Data Mining in the Analysis of High Underpricing Rate of IPO

In order to explain the reason of the high underpricing rate of IPO and to judge whether there exists IPO underpricing, combined with China's specific policy system, this paper classified the IPO first-day underpricing or discount and constructed a classifier by using the decision tree modeling under the multiple influence factors. The numbers listed in this article refer to the data of initial public offerings from September 2006 to December 2014 with a sample. On the basis of the conclusion, this paper suggested to strengthen investors reasoningly investing.