Second Time Lucky? Withdrawn Ipos that Return to the Market

53 Pages Posted: 19 Oct 2004

See all articles by Craig G. Dunbar

Craig G. Dunbar

Ivey Business School, Western University

Stephen R. Foerster

University of Western Ontario - Richard Ivey School of Business

Date Written: October 18, 2004

Abstract

We investigate issuers withdrawing an IPO (after security regulation filings) that return later for a successful offering. Venture capital backing and reputation of the lead underwriter are key factors in predicting successful return. The possibility of returning has a significant impact on the choice to withdraw and the pricing of offerings that succeed. Our sample of returning IPOs also provides a unique setting to investigate underwriter switching after a withdrawal but before a successful IPO. We find that switching occurs in response to poor bank performance and when switching firms "graduate" to banks that have high industry market shares.

Keywords: IPOs, withdrawals, return performance, investment bank reputation, switching

JEL Classification: G14, G24, G32

Suggested Citation

Dunbar, Craig G. and Foerster, Stephen R., Second Time Lucky? Withdrawn Ipos that Return to the Market (October 18, 2004). Available at SSRN: https://ssrn.com/abstract=606442 or http://dx.doi.org/10.2139/ssrn.606442

Craig G. Dunbar (Contact Author)

Ivey Business School, Western University ( email )

1255 Western Road
Room 2309
London, Ontario N6G 0N1
Canada
519-661-3716 (Phone)
519-661-3963 (Fax)

Stephen R. Foerster

University of Western Ontario - Richard Ivey School of Business ( email )

1255 Western Road
London, Ontario N6G 0N1
Canada
519-661-3726 (Phone)
519-661-3485 (Fax)

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