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Green Versus Gray Initial Public Offerings: Ownership, Withdrawal, and Post-IPO Performance

Author

Listed:
  • Freddie Cleverley
  • Ivan Diaz-Rainey
  • Pia Helbing
  • Renzhu Zhang

Abstract

Using a unique European dataset, we examine “green†(renewable energy) and “gray†(non-renewable energy) IPOs in terms of ownership characteristics, withdrawal probability, post-withdrawal survival, and post-IPO performance. We find greater private equity and venture capital involvement and higher levels of retained ownership for green IPOs. Gray firms prefer London’s AIM, known for lighter regulation. Green firms are less likely to withdraw in recent years, survive longer, and are less likely to be sold post-withdrawal. These results, indicating a positive market and “insider†sentiment toward green firms, suggest insiders of gray firms are more often motivated by “exit†desires. Initially, green IPOs underperform with more negative BHARs and lower alphas. However, over time, this underperformance decreases due to increased institutional ownership and a higher return “reward†for greater business risk. JEL Classification: G24, G34, Q56

Suggested Citation

  • Freddie Cleverley & Ivan Diaz-Rainey & Pia Helbing & Renzhu Zhang, 2025. "Green Versus Gray Initial Public Offerings: Ownership, Withdrawal, and Post-IPO Performance," The Energy Journal, , vol. 46(2), pages 127-170, March.
    • Handle: RePEc:sae:enejou:v:46:y:2025:i:2:p:127-170
    DOI: 10.1177/01956574241281585
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    References listed on IDEAS

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    Cited by:

    1. Wei Zhang & Xinyu Li & Guanying Wang & Xiangqian Li, 2026. "Environmental pollution and IPO pricing efficiency: evidence from heavily polluting firms in China," Review of Quantitative Finance and Accounting, Springer, vol. 66(2), pages 757-798, February.

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    Keywords

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    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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