Why do companies go public at MTFs? An empirical analysis of the Swedish market

Abstract

This thesis sets out to highlight the motivations to list at a multilateral trading facility rather than a regulated market. I use a sample of Swedish companies going public between 2007 and 2013 to document the difference in characteristics of the companies using regulated and unregulated markets. I find that companies using unregulated markets do so to finance growth opportunities to a higher degree than what is the case for companies listing at regulated markets. I also find that the cost of capital decreases more after the IPO of a company listing at an unregulated market. My results suggest that making public equity financing more available enables young companies to get the funding needed to invest in growth opportunities.