Abstract:

Purpose- Firms face financing problems from time to time while operating under intense competition. Firms apply different ways to eliminate of the financial deficit. One of the ways that firms commonly apply is offering their shares to public. There are a lot of issues to consider when offering to the public. One of the most important of these issues is the price of stocks which are offered to the public. Methodology- From this point of view, the main goal of the study is to determine whether the pricing of stocks in initial public offering is the optimum price or not. 19 firms data which is offered to public in the Istanbul Stock Exchange (ISE) between 2014 and 2016 were used in the implementation of the study. The Event Study method was used in the analysis of the data. Findings- As a result of the analysis, after the public offering, the stock performance was measured and the value of the stocks’ initial public offering prices was tried to be determined. According to the results of the analysis, it was determined that the companies exported their stocks at low prices in their initial public offerings. Conclusion- The results of the study show that there is a low pricing in the initial public offering in Istanbul Stock Exchange, similar to the developed and emerging markets.

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