Turkish IPOs in a changing regulatory and economic environment
Date
2021-06-17
Editor(s)
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Borsa Istanbul Review
Print ISSN
2214-8450
Electronic ISSN
2214-8469
Publisher
Elsevier
Volume
Issue
Pages
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Series
Abstract
The larger underpricing (15 percent) in the early years following the inauguration of Borsa Istanbul indicates the importance of investors, intermediaries, and firm insiders learning about the trading and pricing of firms in organized stock markets. The underpricing in recent years (from 2010 to 2020) averages 5 percent. Micro-level uncertainties about the firm as evidenced by the smaller underpricing in IPOs marketed using fixed offer prices, and the IPOs where underwriters signed on for firm commitment also prove important. Underpricing also proves smaller in larger IPO firms.