Expected and Actual Proceeds from Share Issue on the Warsaw Stock Exchange

Anna Wawryszuk-Misztal
Additional contact information
Anna Wawryszuk-Misztal: Maria Curie Sklodowska University, Poland

from ToKnowPress

Abstract: The paper aims to assess the impact of the financial crisis of 2008 – 2009 on the possibilities of raising capital through the initial public offerings (IPOs) on the Warsaw Stock Exchange (WSE). The research carried out allowed to indicate the scale of divergences between the proceeds from the share issue in the process of IPO expected by enterprises and the actual proceeds. The adopted hypothesis states that the financial crisis not only added to the decrease in the number of IPOs, but also caused that enterprises issuing shares more often gained less capital than they originally aimed. The research sample consists of the companies which in the years 2006 – 2014 raised capital through IPO. The data used in the analysis was gathered from: 1) the prospectus with appendixes and current reports for each of the IPOs by the firms in the sample, 2) the WSE data, 3) the Central Statistical Office data. The analyses done allow to conclude that in the research sample both the number of the issues launched through IPO and their total value decreased, compared to the value from the pre-crisis period. While comparing the value of the expected proceeds from the share issue with the actual gross proceeds, one can clearly see that in the post-crisis period for companies which get proceeds at a lower than expected level their share increased. A similar correlation is observed for the issue price, i.e. more often the surveyed entities sold their shares at a lower than maximum price.

Keywords: IPO; raising capital; equity issue; financial crisis; Warsaw Stock Exchange (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.toknowpress.net/ISBN/978-961-6914-13-0/papers/ML15-278.pdf full text (application/pdf)
http://www.toknowpress.net/ISBN/978-961-6914-13-0/MakeLearn2015.pdf Conference Programme (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tkp:mklp15:1429-1436

Access Statistics for this chapter

More chapters in Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society: Managing Intellectual Capital and Innovation; Proceedings of the MakeLearn and TIIM Joint International Conference 2015 from ToKnowPress
Bibliographic data for series maintained by Maks Jezovnik ().