IPO activity and underpricing on alternative investment market (NewConnect) in Poland

Agata Gemzik-Salwach, Paweł Perz

Abstract


The paper discusses IPO activity on alternative investment market in Poland (NewConnect) between 2007 and 2012. In particular, attention was drawn to the phenomenon known in the literature as IPO underpricing. The phenomenon can be observed for many years on most stock markets in the world. The study reveals significant average first day positive initial return of 42.5% for 439 IPOs on polish alternative investment market (NewConnect) included in the study. It has been observed that the rate of return on this strategy were significantly higher than for IPOs on Warsaw Stock Exchange, where for a  group of 173 companies average rate of return was 9.0%.

Keywords


IPO; alternative investment markets; IPO underpricing

Full Text:

PDF (Język Polski)

References


Al-Hassan A., Delgado F., Omran M., IPO Behavior in GCC Countries: Goody-Two Shoes or Bad-to-the-Bone?, International Monetary Fund, WP/07/149, Washington, 2007.

Aussenegg W., Privatization Versus Private Sector Initial Public Offerings in Poland, “Multinational Finance Journal” 2000, vol. 4, no. 1–2.

http://www.pwc.pl/pl/ipo-watch-europe/index.jhtml (20.04.2013).

Jelic R., Briston R., Privatisation Initial Public Offerings: The Polish Experience, “European Financial Management” 2003, vol. 9, no. 4.

Jewartowski T., Lizińska J., Short- and Long-Term Performance of Polish IPO, “Emerging Markets Finance & Trade” 2012, vol. 48, no. 2

Loughran T., Ritter J., Rydqvist K., Initial public offerings: International insights, “Pacific-Basin Finance Journal” 1994, no. 2.

Lyn E., Zychowicz E., The Performance of New Equity Offerings in Hungary and Poland, “Global Finance Journal” 2003, no. 14.

Perz P., Rynek pierwszych emisji publicznych (IPO) – wybrane zagadnienia, „E-finanse – Finansowy Kwartalnik Internetowy” 2005, nr 2.

Purnanandam A., Swaminathan B., Are IPOs Underpriced?, Johnson Graduate School of Management Working Paper 2002, http://ssrn.com/abstract=281199 (10.04.2013).

Ritter J., Welch I., A Review of IPO Activity, Pricing and Allocations, “The Journal of Finance” 2002, no. 4.

Sieradzki R., Does it pay to invest in IPOs? Evidence from the Warsaw Stock Exchange, „National Bank of Poland working paper” 2013, no. 139.

Sukacz D., Fenomen IPO, „Nasz Rynek Kapitałowy” 2004, nr 3.

Ustawa z dnia 29 lipca 2005 r. o ofercie publicznej i warunkach wprowadzania instrumentów finansowych do zorganizowanego systemu obrotu oraz o spółkach publicznych, tekst jednolity: Dz.U. 2005 Nr 184, poz. 1539.




DOI: http://dx.doi.org/10.17951/h.2013.47.3.177
Date of publication: 2015-07-23 22:18:14
Date of submission: 2015-07-20 14:05:05


Statistics


Total abstract view - 310
Downloads (from 2020-06-17) - PDF (Język Polski) - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2015 Agata Gemzik-Salwach, Paweł Perz

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.