A success dressed as a failure? Evidence from post-IPO withdrawal outcomes in Europe

Pia Helbing; Brian M. Lucey

doi:10.1111/eufm.12487

A success dressed as a failure? Evidence from post-IPO withdrawal outcomes in Europe

Pia Helbing, Brian M. Lucey

Research output: Contribution to journal › Article › peer-review

Abstract / Description of output

What happens to companies that file for an initial public offering (IPO), but withdraw and do not list? How long does the post-IPO outcome take? These questions are investigated by analysing market, firm and offer characteristics of 334 withdrawn IPOs in Europe between 2001 and 2015. The majority of withdrawn IPOs is engaged in M&A, only few file for a second time IPO. These post-IPO withdrawal outcomes happen shortly after the IPO filing. Private equity and venture capital-backed firms are more frequently engaging in M&A or trading. The evidence suggests that the IPO may be used as a marketing mechanism, being one of several alternatives of exit.

Original language	English
Number of pages	35
Journal	European Financial Management
Early online date	6 Apr 2024
DOIs	https://doi.org/10.1111/eufm.12487
Publication status	E-pub ahead of print - 6 Apr 2024

Keywords / Materials (for Non-textual outputs)

IPO
Europe
withdrawal
M&A
probit
survival

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HelbingLuceyEFM2024ASuccessDressedAsAFailureFinal published version, 2.03 MBLicence: Creative Commons: Attribution (CC-BY)

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abstract = "What happens to companies that file for an initial public offering (IPO), but withdraw and do not list? How long does the post-IPO outcome take? These questions are investigated by analysing market, firm and offer characteristics of 334 withdrawn IPOs in Europe between 2001 and 2015. The majority of withdrawn IPOs is engaged in M&A, only few file for a second time IPO. These post-IPO withdrawal outcomes happen shortly after the IPO filing. Private equity and venture capital-backed firms are more frequently engaging in M&A or trading. The evidence suggests that the IPO may be used as a marketing mechanism, being one of several alternatives of exit.",

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AU - Lucey, Brian M.

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N2 - What happens to companies that file for an initial public offering (IPO), but withdraw and do not list? How long does the post-IPO outcome take? These questions are investigated by analysing market, firm and offer characteristics of 334 withdrawn IPOs in Europe between 2001 and 2015. The majority of withdrawn IPOs is engaged in M&A, only few file for a second time IPO. These post-IPO withdrawal outcomes happen shortly after the IPO filing. Private equity and venture capital-backed firms are more frequently engaging in M&A or trading. The evidence suggests that the IPO may be used as a marketing mechanism, being one of several alternatives of exit.

AB - What happens to companies that file for an initial public offering (IPO), but withdraw and do not list? How long does the post-IPO outcome take? These questions are investigated by analysing market, firm and offer characteristics of 334 withdrawn IPOs in Europe between 2001 and 2015. The majority of withdrawn IPOs is engaged in M&A, only few file for a second time IPO. These post-IPO withdrawal outcomes happen shortly after the IPO filing. Private equity and venture capital-backed firms are more frequently engaging in M&A or trading. The evidence suggests that the IPO may be used as a marketing mechanism, being one of several alternatives of exit.

KW - IPO

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KW - probit

KW - survival

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JO - European Financial Management

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ER -

A success dressed as a failure? Evidence from post-IPO withdrawal outcomes in Europe

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