Ögonen på horisonten - Är en utländsk IPO fördelaktig för svenska teknikbolag?
2015
Background and problem: The past decades technology development and the globalization
has created new opportunities for companies to raise capital. Firms are no longer bound to list
on marketplaces in the country of incorporation. Instead they can choose to list in a foreign
marketplace that may suit the company better. Analyzes has shown that technology
companies are the ones driving the growing trend to list abroad. Furthermore, earlier studies
show that technology companies are the ones most likely to capitalize on the financial
advantages that a foreign listing can lead to. Despite of this it´s relatively unusual that
Swedish technology companies list abroad.
Research question: Which financial advantages are there with a foreign IPO and should
Swedish technology companies consider doing this more often in order to reach a higher
market capitalization?
Purpose: The purpose of this study is to increase the knowledge about foreign initial public
offerings (FIPOs) by examining the main financial drivers. Furthermore, the study aims to
examine whether the valuation and characteristics of technology companies differ between
domestic companies listed on First North Stockholm and firms carrying out an FIPO on the
Alternative Investment Market (AIM).
Method: The study has been conducted by a qualitative and deductive research approach.
Result and conclusion: The study finds that foreign technology companies listed on AIM has
a large market capitalization and relatively young. The first twelve months after listing these
companies underperform not only the market but also the domestic companies in the same
sector listed on First North. AIM seems to be characterized by a relatively high information
asymmetry. This is evidenced in the study's survey of underpricing, where this is more
comprehensive for foreign companies on AIM than on domestic companies on First North.
The study finds no statistical evidence that would indicate that foreign technology companies
on AIM would receive a higher valuation than companies in the same sector on First North.
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