Assessment of the Effectiveness of an Initial Public Offering by Russian Companies
Assessment of the Effectiveness of an Initial Public Offering by Russian Companies

Summary/Abstract: This article is dedicated to the analysis of the calculation of the efficiency of the IPO carrying out at stock exchanges in Russia and abroad and the impact on the companies’ market value. The novelty of approaches consists in solving important theoretical and organizational-methodological problems of an economic analysis of the company’s market value growth by attracting initial public offerings for stable growth, achieving better credit conditions, obtaining the status of a public company to enter foreign markets. Results of the study show that a successful IPO is characterized by a combination of achieved capitalization and the subsequent growth of shares of the issuer. In addition, the increase must be gradual. This behavior characterizes the profitable sale of the issuing company to the underwriter, and investors are able to make a profit for their participation in the offering. Earlier studies have considered only the cost of capital, but not the economic value added, which makes this work unique and innovative. The results can help build the correct development strategy and allow investors to increase the confidence in the success of the companies, and the company itself will be able to actively develop.

• Details
• Contents