Open AccessTrends in Underpricing of Private Equity Backed IPO at the Capital Market in Poland in the Years 2000–2018
Author(s) -
Piotr Zasępa
Publication year - 2019
Publication title -
annales universitatis mariae curie-skłodowska. sectio h, oeconomia
Language(s) - English
Resource type - Journals
eISSN - 2449-8513
pISSN - 0459-9586
DOI - 10.17951/h.2019.53.4.153-162
Subject(s) - private equity , initial public offering , venture capital , business , financial system , private equity secondary market , private equity firm , capital market , equity (law) , private equity fund , stock exchange , finance , equity capital markets , monetary economics , economics , political science , law
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%.