Abstract:

The phenomenon of undervaluation of shares sold in an IPO is widely discussed in the literature. At the same time, significant differences were observed between the degree of undervaluation among different types of enterprises. Research conducted in various countries does not give a clear answer as to what these differences result from and what are the differences between the undervaluation of shares in IPO among various groups of enterprises. This applies in particular to the share prices of family and non-family businesses sold in the IPO process. The article examines the level of undervaluation of shares of family and non-family enterprises in the IPO process in 2013-2020 in Poland. Research confirms significant differences in the level of undervaluation of shares of family and non-family enterprises in the IPO process on the Polish market. The average undervaluation of family business shares in IPO was 4.7% higher than among non-family businesses. The explanation for this phenomenon is most likely due to the fact that a higher undervaluation allows family businesses to protect SEW.