The relationship between pricing, liquidity and financial debt in initial public offerings: An application for public offerings in the 2020 and 2021 period

Businesses are going public to obtain the resources they need and to become more corporate structures. The impact of the pandemic period that started in March 2020 on capital markets is quite important in terms of finance literature. In this context, the main purpose of this study is to examine how the stocks of companies that went public in 2020 and 2021 were priced and where the obtained premiums were used. The results obtained show that companies generally underpriced, and that companies that went public in 2020 used the premiums they obtained at the beginning of the pandemic to pay off debts and stay liquid. In addition to reducing their liquidity and debt ratios, companies that went public in 2021 started to make new investments due to the decrease in uncertainty.