Abstract
<p>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%.</p>
Highlights
The joint-stock company’s decision to conduct the initial public offering is conditioned by many factors, but the most obvious premise for making the company public is the desire to raise capital for development as a result of a new issue of shares
In the years 2000–2018, 453 companies debuted on the Warsaw Stock Exchange, including 54 funded companies
This represents over 12% of all debuts, which deserves a closer look at the behavior of these entities after the initial public offering
Summary
Faculty of Law and Economics 4/8 Waszyngtona St, 42-217 Częstochowa, Poland. How to quote this paper: Zasępa, P. Trends in Underpricing of Private Equity Backed IPO at. U the Capital Market in Poland in the Years 2000–2018. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, Vol 53, No 4
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