The Impact of Initial Public Offering (Ipo) on the Financial Performance of Algerian Companies: Case Study – Biopharm

BOUHAOUAS, Mounira; OUAHABI, Tarek

doi:10.2478/bsaft-2025-0018

Abstract

The present research paper aims to identify the impact of the Initial Public offering (Ipo) on the financial performance of Biopharm company. This is achieved through the calculation of several key indicators such as turnover evolution, Return on Assets (ROA), Return on Equity (ROE), debt ratio, cost of debt and dividend payout ratio (DPR). A comparison is made between these indicators over two periods: the first refers to the pre-IPo period, while the second covers the post-IPo period. on the basis of these six indicators, the impact of the IPo on Biopharm appears mixed, i.e. there is not a definite overall impact. This suggests that the IPo was not a truly advantageous decision for the company. Furthermore, the Algiers stock exchange does not appear to make a positive contribution to listed companies. This finding is in line with the criticism regularly levelled at the Algiers stock exchange for its lack of dynamism, which is detrimental to listed companies.

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The Impact of Initial Public Offering (Ipo) on the Financial Performance of Algerian Companies: Case Study – Biopharm

Abstract

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