Industry dependent performance of initial public oﬀerings
We analyze abnormal returns of initial public oﬀerings (IPOs) in diﬀerent industries from 2007 to 2015 in the main Swedish markets. We ﬁnd that IPOs outperform a sample of matching ﬁrms from the initial time period (ﬁrst trading day) to the after-market period (a three-year period). Furthermore, adjusted initial returns and oﬀer size of IPOs are positively related to their aftermarket performance. “Oil & Gas, Basic Materials & Utilities” and “Health care” are the two best performing sectors and they are the only two sectors that signiﬁcantly outperform “Industrials”, with the latter being the worst performing sector.
MSc in Finance