Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

IPO Underpricing in the Swedish Market: A 21st Century Analysis

Mellander Wallin, Erik LU and Palmlöv, Linus LU (2025) NEKH02 20242
Department of Economics
Abstract
IPO underpricing is a researched phenomenon, with academics trying to understand its causes. This study investigates the potential explanations for this event, focusing on the Swedish market from 2000 to 2023. Using a dataset comprising 539 IPOs, including 253 technology firms, the analysis investigates how firm characteristics, market conditions, and sector affiliation influence first-day returns. To examine these relationships, we utilize OLS and WLS regression models. In these regressions, we measure the impact of four independent variables on the first-day return. Additionally, we analyze descriptive statistics and correlation matrices to identify potential patterns and trends. The results indicate that companies are, on average,... (More)
IPO underpricing is a researched phenomenon, with academics trying to understand its causes. This study investigates the potential explanations for this event, focusing on the Swedish market from 2000 to 2023. Using a dataset comprising 539 IPOs, including 253 technology firms, the analysis investigates how firm characteristics, market conditions, and sector affiliation influence first-day returns. To examine these relationships, we utilize OLS and WLS regression models. In these regressions, we measure the impact of four independent variables on the first-day return. Additionally, we analyze descriptive statistics and correlation matrices to identify potential patterns and trends. The results indicate that companies are, on average, underpriced, with a noticeable difference in underpricing between technology and non-technology firms. The descriptive statistics also reveal patterns and trends between firm characteristics and underpricing. However, only the hot-issue market seems to statistically significantly affect the first-day return, suggesting that heightened IPO activity influences underpricing. (Less)
Please use this url to cite or link to this publication:
author
Mellander Wallin, Erik LU and Palmlöv, Linus LU
supervisor
organization
course
NEKH02 20242
year
type
M2 - Bachelor Degree
subject
keywords
IPO underpricing, First-day return, Hot-issue market, Technology firms, Swedish market
language
English
id
9184412
date added to LUP
2025-05-16 10:47:04
date last changed
2025-05-16 10:47:04
@misc{9184412,
  abstract     = {{IPO underpricing is a researched phenomenon, with academics trying to understand its causes. This study investigates the potential explanations for this event, focusing on the Swedish market from 2000 to 2023. Using a dataset comprising 539 IPOs, including 253 technology firms, the analysis investigates how firm characteristics, market conditions, and sector affiliation influence first-day returns. To examine these relationships, we utilize OLS and WLS regression models. In these regressions, we measure the impact of four independent variables on the first-day return. Additionally, we analyze descriptive statistics and correlation matrices to identify potential patterns and trends. The results indicate that companies are, on average, underpriced, with a noticeable difference in underpricing between technology and non-technology firms. The descriptive statistics also reveal patterns and trends between firm characteristics and underpricing. However, only the hot-issue market seems to statistically significantly affect the first-day return, suggesting that heightened IPO activity influences underpricing.}},
  author       = {{Mellander Wallin, Erik and Palmlöv, Linus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{IPO Underpricing in the Swedish Market: A 21st Century Analysis}},
  year         = {{2025}},
}