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Raising capital after IPO withdrawal

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  • Boeh, Kevin K.
  • Dunbar, Craig G.

Abstract

We document outcomes for withdrawn U.S. IPOs (1206) from 1998 to 2017. While prior literature has studied post-withdrawal IPO re-filings and M&A, we consider private capital raising as an alternative to these outcomes as well as a potential complement. We identify factors driving private capital raising post withdrawal. We also examine the impact of key regulatory changes enacted over our sample period intended to ease capital formation. We find no significant impact of the adoption of SEC Rule 155 but a positive effect of the JOBS Act. Private capital raising post withdrawal supports second time IPO plans but not M&A.

Suggested Citation

  • Boeh, Kevin K. & Dunbar, Craig G., 2021. "Raising capital after IPO withdrawal," Journal of Corporate Finance, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:corfin:v:69:y:2021:i:c:s0929119921001413
    DOI: 10.1016/j.jcorpfin.2021.102020
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    Cited by:

    1. Amaya, Diego & Filbien, Jean-Yves & Kooli, Maher, 2022. "Media coverage and the decision to withdraw an IPO," International Review of Financial Analysis, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    IPO; Withdrawal; Private placement; Valuation; Raising capital;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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