IPO costs on the Polish capital market

Abstract

The effectiveness of IPO processes is a frequent research subject for finance scholars. This article examines the cost of such processes on the Warsaw Stock Exchange in 2008–2017 based on a sample of 136 companies. Research results indicate that IPO costs for transactions worth up to PLN 50m are significantly higher than for the remaining transactions and decline as the value of the IPOincreases. At the same time, poor state of theWSE related to the absence of new capital and the loss of trust among investors due to events related to failure to comply with corporate governance mean that it may be difficult to see the return of a larger number of IPOs and the amount of equity raised in the upcoming years.