Post IPO Withdrawal Outcomes

39 Pages Posted: 26 Aug 2012 Last revised: 10 Jan 2014

See all articles by Kevin K. Boeh

Kevin K. Boeh

University of Florida - Department of Finance, Insurance and Real Estate

Craig G. Dunbar

Ivey Business School, Western University

Date Written: December 23, 2013

Abstract

While existing research shows that a large number of IPOs are withdrawn from registration, little is known regarding the fates of those firms. This study documents capital market activities and corporate outcomes for 588 withdrawn IPOs between 1999 and 2004. We find that 13% of withdrawing issuers return for a successful IPO, 36% are able to raise capital privately and 42% either merge or are acquired with 11% filing for bankruptcy. While the implied valuation from post-withdrawal mergers/acquisitions and returning IPOs are similar to valuations implied in the initial withdrawn filing, implied valuations from private placements are significantly discounted. The ex-ante probabilities of post withdrawal outcomes and post withdrawal valuations are found to have significant effects on the choice to withdraw an IPO.

Keywords: Initial public offerings, withdrawal, filing, asymmetric information, mergers, bankruptcy

JEL Classification: G24, G32, C22

Suggested Citation

Boeh, Kevin K. and Dunbar, Craig G., Post IPO Withdrawal Outcomes (December 23, 2013). Available at SSRN: https://ssrn.com/abstract=2135772 or http://dx.doi.org/10.2139/ssrn.2135772

Kevin K. Boeh (Contact Author)

University of Florida - Department of Finance, Insurance and Real Estate ( email )

P.O. Box 117168
Gainesville, FL 32611
United States

Craig G. Dunbar

Ivey Business School, Western University ( email )

1255 Western Road
Room 2309
London, Ontario N6G 0N1
Canada
519-661-3716 (Phone)
519-661-3963 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
409
Abstract Views
2,142
rank
69,930
PlumX Metrics