Comparative study of short-run IPO performance in a selection of Euronext countries
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- Master of Science 
This thesis investigates the relevance of prevalent underpricing theories on 175 IPOs occurring between 2014-2021 in the Euronext countries of Belgium, France, and the Netherlands. Across all Euronext IPOs, we observe an average underpricing of 3% adjusted for industry movements. By examining each country separately, we discover that IPOs in the Netherlands are underpriced by 5.1%, followed by 2.5% in France, and 2.3% in Belgium. The Euronext sample provides mixed support for the winner’s curse theory, as we find that using a reputable underwriter significantly reduces underpricing, while a larger offer size is associated with significantly higher underpricing. Moreover, the results contradict the hot issue market theory and investor sentiment theory, while finding no significance for either the grandstanding theory or quality/price trade-off theory. Lastly, when repeating the analysis on a country-specific basis, we find that the underpricing theories’ explanatory power varies significantly among the Euronext countries.
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2022