Trends in Underpricing of Private Equity Backed IPO at the Capital Market in Poland in the Years 2000–2018

Piotr Zasępa


The global economy is distinguished by the dynamic development of financial markets and with it creating a new specific segments of the market. One of them is the market for venture capital and private equity funds, which is developing very dynamically for more than 50 years. This article aims to analyze the level of underestimation of the IPO on the Warsaw Stock Exchange companies supplied by venture capital and private equity funds. Analyzing the rates of return of 54 companies supplied with VC funds and 453 companies which do not have the support of venture capital funds in the 2000–1018 period, it should be stated that traditional companies reached the lower level of underestimation. For companies a broad market level underestimation of the IPO was 9.99% and for companies with VC/PE support – 9.12%.


IPO underpricing; private equity backed IPO

Full Text:



Leland, H.E., & Pyle, D.H. (1977). Informational asymmetries, financial structure, and financial intermediation. Journal of Finance, 32(4). doi:10.2307/2326770

Lyn, E., & Zychowicz, E.J. (2003). The performance of new equity offerings in Hungary and Poland. Global Finance Journal, 14(2). doi:10.1016/S1044-0283(03)00011-5

Mamcarz, K. (2010). Niedoszacowanie ceny emisyjnej akcji w pierwszej ofercie publicznej jako instrument komunikacji spółek akcyjnych z inwestorami. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, 44(2).

Miller, E.E. (1977). Risk, uncertainty, and divergence of opinion. Journal of Finance, 32(4). doi:10.1111/j.1540-6261.1977.tb03317.x

Sieradzki, R. (2013). Does it pay to invest in IPOs? Evidence from the Warsaw Stock Exchange. National Bank of Poland Working Paper, (139). doi:10.2139/ssrn.2213770

Sieradzki, R., & Zasępa, P. (2016). Underpricing of private equity/venture capital backed IPOs. Do they differ from other offers? Argumenta Oeconomica, 36(1).

Sukacz, D. (2005). Pierwsze oferty publiczne na rynkach kapitałowych. Warszawa: CeDeWu.

Teoh, S.H., Welch, I., & Wong, T.J. (1998). Earnings Management and the Post-Issue Underperformance of Seasoned Equity Offerings. Retrieved from

Yung, C., & Zender, J.F. (2010). Moral hazard, asymmetric information and IPO lockups. Journal of Corporate Finance, 16(3). doi:10.1016/j.jcorpfin.2009.12.004

Data publikacji: 2019-12-31 08:37:27
Data złożenia artykułu: 2019-05-06 21:29:51


Total abstract view - 558
Downloads (from 2020-06-17) - PDF - 0



  • There are currently no refbacks.

Copyright (c) 2019 Piotr Zasępa

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