The process of withdrawal from the public offering and evaluation of firms in Turkey

The aim of the study is to investigate the reasons for the companies listed on the stock exchange in Istanbul Stock Exchange becoming withdrawn from the public offering and to analyze the relationships between these reasons. The reason for being withdrawn has been asserted previously in the literature was investigated. It has been determined from the weekly journal that 120 companies were found to be withdrawn from the public offering between 1991 and 2013. Because of the fact that 20 of the companies are levied by the SDIF (Saving Deposit Insurance Fund) and 10 of the companies are passed into other hands, 90 companies were reached and asked to respond to the questionnaire. 40 of the 90 surveyed firms were returned (44% rate of return). The collected data were tested by Cross-Tabulation Analysis, Chi-square Analysis and Mann-Whitney U Test, and the following results were obtained: (a) There is an importance of Intermediary company. A successful intermediary company also gives successful results in a latter public offering of a company previously being withdrawn. (b) It has been reached that there is a significant relationship between the age of companies and resorting them to public offerings again after being withdrawn. (c) There is a significant relationship between the sale method used in the public offering and the reason for being withdrawn from the public offering. The companies applied the demand collection method with the price interval method find the public offering more costly and see the other financing sources more attractive. Those who have chosen other methods are seen to be withdrawn from the public offerings because of their concerns about worsening of the general situation of the stock market and economy and also because of the worries that stocks do not reflect real value. (d) There is no relationship between the reasons for the issuance of shares by the companies and the method of public offering they used. According to this, it has been achieved that, the companies that issue their shares in order to provide financing and liquidity prefer the method of public offering through capital increase, the companies that issue shares for reasons other than to provide financing and liquidity (to increase prestige, institutionalization or creditworthiness) prefer to use method of public offering through capital increase and method of selling their existing shares together. (e) It has been achieved that there is a significant relationship between dates and reasons for companies to be withdrawn from the public offering. It is seen that companies are in a state of withdrawal from the public offering during bad periods of the stock market and the economic situation and during crisis periods. (f) There is no significant relationship between the success of intermediary company in the public offering process and the situation of companies in resorting into the public offering after a withdrawal.