Underpricing of Venture Capital-Backed IPOs [Elektronisk resurs]

• This thesis researched the effect of Venture Capital ownership on underpricing in IPOs. We conducted OLS-regressions on two data samples consisting of IPOs in the Nordics between 2009 and 2019. Two samples were collected, consisting of 504 IPOs, of which 50 were Venture Capital-backed. The second sample consisted of 50 Venture Capital-backed IPOs, where 12 IPO was exited by Venture Capitalists. Through our regressions, we found that Venture Capital-backed IPOs where less underpriced than non-Venture Capital-backed IPOs due to the certification effect. Furthermore, Venture Capital-exited IPOs were more underpriced than Venture Capital-backed IPOs, suggesting that the exit's signaling effect increased ex-ante uncertainty surrounding the IPO. 

Genre

government publication  (marcgt)

Indexterm och SAB-rubrik

Venture Capital

Venture Capital-backed

Venture Capital-exit

IPO

Initial Public Offering

Underpricing

Nordic Stock Market

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