IPO Underpricing and Long-run Performance in Scandinavia: The Impact of governmental restrictions

Abstract

This thesis investigates IPOs issued between 2013 and 2022 in the Scandinavian countries. We analyze the impact of government restrictions during COVID-19 on underpricing and long-run performance. We found that restrictions had a significant effect on the underpricing of IPOs. The average underpricing was 10.07% higher in Scandinavia for IPOs issued during restrictions. Furthermore, we find that there was a significant positive difference in long-run performance of IPOs issued in Norway for 90 days compared to the periods with no restrictions.