Initial public offerings : an empirical study of how the IPOs on Oslo Stock Exchange are priced relative to the indicative price range

摘要

This thesis investigates Initial Public Offerings (IPO) on Oslo Stock Exchange between 2006and 2011. The analyses examine how the IPOs are priced relative to the indicative pricerange, and how this affects the performance. In addition, the effect of a previous listing inthe OTC-market, issue size and the use of a Green Shoe Option (GSO) have been examined.Based on my analyses I find the average market adjusted initial return to be marginallypositive, and it seems to decline in the longer run.When investigating how the IPOs were priced relative to the indicative price range I find themajority to be priced in the lower part of the range. I also observe that small bookbuilt IPOsand IPOs sold without a GSO more frequently were priced below the midpoint of the range.The analysis indicates that IPOs priced in the upper part of the range perform better in theaftermarket. The regression analyses suggest that both private and public information areonly partially incorporated into the issue price.My results indicate that companies previously listed in the OTC-market and large issuesexperience less fluctuation after the introduction. Furthermore, every IPO using fixed-pricewas characterized as small. Finally, I find that fixed-price was more often used amongformer OTC-listed companies.