Naslov
Some Reflections of the Period of Big IPOs in the Croatian Financial Market

Autori
Grubišić, Mihaela

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
4th International Conference "An Enterprise Odyssey: Tourism - Governance and Entrepreneurship" Proceedings / Galetić, Lovorka ; Čavlek, Nevenka - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2008, 532-555

ISBN
978-953-6025-24-4

Skup
4th International Conference "An Enterprise Odyssey: Tourism -Governance and Entrepreneurship"

Mjesto i datum
Cavtat, Hrvatska, 11.06.2008. - 14.06.2008

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
initial public offering; financial market reactions; emerging market; privatisation; Croatia

Sažetak
This paper analyses the impacts of the big IPOs in Croatia that started in November 2006. It is about the IPO of the state holding in Croatian oil company - INA d.d., the biggest Croatian telecommunications company – T-HT d.d. and some private holdings’ public offerings in-between. The state holdings’ sale in INA d.d. and T-HT d.d. especially had many impacts. They ranged from those of the enlarged number of market participants to micro- and macro-economic consequences. Particularly there were some social and mass psychology phenomena relating to the individual investors. Small investors suddenly discovered a great attractiveness of the financial market. The question is – why? Due to weak knowledge and inexperience the investment risk was practically neglected by the public in the IPO of INA d.d. Similar investment behaviour was even more highlighted during the IPO of the state's holding in the biggest telecommunications company in Croatia – T-HT d.d., that started in September 2007. It is hypothesised that the expected short-term capital gain was the major driver for investing in the shares offered through the IPOs, especially the shares offered by the state. Due to lower price of shares offered for the state holdings the state practically transferred a considerable part of its holdings’ value to the public. Consequently, the un(realised) capital gain earned by small investors in the IPO of INA d.d. spurred the controversies on possible capital gain tax introduction that in turn became one of the major political issues in the election year campaign. The gains of institutional investors remained forgotten. Huge implications of the state-owned holdings’ sale reflected on the regulatory institutions preparedness and their know-how infrastructure. The media played one of the key roles in the success story of the state-holdings’ sale. All privately-owned companies' that announced the IPOs around and between the state holdings sale profited on the heralding of the state’ s ownership sale in these two strategic companies. Although sales of state holdings through the IPOs were emphasised as the most transparent privatisation processes ever in Croatia, these IPOs carry a lot of controversies. This paper aims to identify them and discuss them by the normative analysis of the IPO procedures applied and benefits and costs incurred. Much attention is dedicated to the reactions of the institutional and private investors in the financial market during the period of the IPOs’ announcement, indication of interest phase and in the after-listing period. This paper tries to explain the phenomenon of the IPO processes in Croatia and elaborate the differences between the IPOs of the privately-owned and the state-owned companies.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
EconLit and ProQuest indexing/abstracting

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