What factors do affect the underpricing on Swedish IPOs? : A quantitative study of returns on Swedish stock exchange markets

Abstract: The IPO market in Sweden has been on the rise and has had years of record in number of companies that has gone public. The phenomenon of underpricing has been analyzed for years in different markets as well as in different time periods. This thesis analyzes the factors affecting underpricing during the years 2017 to 2022 on the markets: Nasdaq Stockholm, First North Stockholm and Spotlight. Additionally, an investigation of the underpricing between the industries have been done by using several control variables to determine the differences in underpricing between the industries. Various tests use a sample size of 366 companies to determine if the variables have a statistical significance. The results show that the average IPO during the time period is underpriced by approximately 9%.