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IPO Underpricing – Can it be predicted?: A quantitative research study of Swedish IPOs 1997-2011
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2012 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesisAlternative title
Underprissättning av IPO : Går det att förutspå? (Swedish)
Abstract [en]

When a company sells shares of their business to the public for the first time, it is called an Initial Public Offering, IPO. The IPO is usually conducted by the issuing firm to raise capital for their future growth. Before the IPO the information about the issuing company is often limited and the investment in an IPO is associated with risks. The investors who choose to invest in an IPO are therefore usually compensated with a discount on the shares and often experience a first day positive return. This first day positive return is the definition of underpricing. If the majority of the IPOs are underpriced it should be of interest for an investor to take part of this opportunity and use it as an investment strategy. This thesis investigates if there is a way to predict which IPOs that will generate a positive first day return based on the information in the IPO prospect.

Abstract [sv]

En IPO är det första erbjudandet av företagets aktier till den publika marknaden. En IPO genomförs ofta i samband med att företaget behöver ta in nytt kapital för framtida investeringar. Innan ett företag blir publikt är informationsinsynen begränsad vilket medför en risk för den som vill investera i det initiala erbjudandet. Investerarna som väljer att investera i erbjudandet är ofta kompenserade med en rabatt på aktierna och får då ofta en positiv avkastning på första handelsdagen. Denna initiala avkastning definieras som underprissättningen av erbjudandet. Om en majoritet av börsnoteringarna är underprissatta skulle det vara av stort intresse för investerare att upprepande investera i IPOs och ha detta som investeringsstrategi. Den här uppsatsen undersöker om det går att förutspå vilka IPOs som genererar en positiv avkastning första handelsdagen baserat på den informationen som finns att tillgå i IPO prospektet.

Place, publisher, year, edition, pages
2012. , 73 p.
Keyword [en]
Initial Public Offering, IPO, IPO Underpricing, Corporate Finance, Stock Offer Price, Ownership Retention, Operating Cash Flow
Keyword [sv]
Börsintroduktion, IPO, IPO Underprissättning, Finansiell Ekonomi, Aktiepris, Ägarandel efter IPO, Operativt Kassaflöde
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-18327OAI: oai:DiVA.org:hj-18327DiVA: diva2:531502
Subject / course
IHH, Business Administration
Presentation
2012-05-29, 08:00 (English)
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Note
Civilekonom-uppsatsAvailable from: 2012-06-13 Created: 2012-06-07 Last updated: 2012-06-25Bibliographically approved

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CiteExportLink to record
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Citation style
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