İstanbul Menkul Kıymetler Borsası'nda (İMKB) uygulanan halka arzdaki düşük fiyatlandırma

This paper aims to provide additional international evidence on the Initial Public Offerings (IPOs), using data from the Turkish Stock Exchange Market. In this study the initial and after-market returns for the Turkish IPOs is investigated for the period 1996-2006. The analysis show that the mean underpricing for all firms is 9.5%, while those for Financial, Manufacturing, Transportation, Communication and Storage, Technology, Wholesale and Retail Trade, Hotels and Restaurants, and Education, Health, Sports and Other Social Services sectors are 11.9%, 9.1%, 20.6%, 10.3%, 3.3%, and 0.9%, respectively. All underpricing levels are statistically significant at the conventional levels except for the Wholesale and Retail Trade, Hotels and Restaurants, and Education, Health, Sports and Other Social Services sectors. As for the sub-sectors, the highest underpricing is observed in Manufacture of Non-Metallic Mineral Products (21.2%) followed by Manufacture of Fabricated Metal, Products, Machinery and Equipment (18.5%). In investigation of the factors influencing the initial performance, control variables such as the percentage change in ISE-100 index during last 15 days before the first trading day, gross proceeds, size of issuer, the operating history of the firm before going to public, the reputation of underwriter, privatization, institutional ownership, method of going public, sale method of new issues, self-offered IPOs are employed. The regression results indicate that self-issued offerings, the percentage change in ISE-100 index during last 15 days before the first trading day and privatization have statistically significant impact on the underpricing.