The Timing and Pricing of Initial Public Offerings: Evidence from the Low Countries

The number of firms whose shares are listed on the Amsterdam Stock Exchange reached a record high in the early 1930s and is declining ever since. The influx of new listings is apparently insufficient to compensate for delisting as a result of takeovers, bankruptcies, mergers and privatizations. Such a decline is also observed in other countries, so that the trend in the Netherlands cannot simply be attributed to a possible changing role of the Amsterdam Stock Exchange in the international capital markets.
The dissertation examines with historical data, which factors influence the influx of new listings. In addition, it analyzes the criteria on the basis of which firms determine the method for offering their shares to investors prior to the listing, and what effect this has on the pricing of the shares.
An analysis of Dutch IPOs between 1876 and 2015 shows that more firms apply for a listing as their capital needs increase and in periods with positive investors sentiment. It also shows that the number of listings increases as the role of the Amsterdam Stock Exchange in the Dutch capital market becomes more important. An analysis of Belgian IPOs between 1839 and 1935 shows that the number of firms with a listing on the Brussels Stock Exchange did not increase immediately when the stock exchange regulations were abruptly and drastically relaxed. With regard to the method used, the dissertation shows that the choice of method of Dutch firms between 1918 and 1939 was determined by costs and risk. The smaller the volume offered to investors, the more often firms opted for an issue at their own risk, with no effect on the pricing of the shares.