Offer price and ownership structure: A study of shareholders in Swedish IPOs 2006–2016

Martin Abrahamson

Offer price and ownership structure: A study of shareholders in Swedish IPOs 2006–2016

Research output: Contribution to conference › Paper

Abstract

This study uses the stock ownership records of Swedish firms and hand-collected Initial Public Offerings (IPOs) data to analyze the offer prices and underpricing of IPO shares and the relationship with the post-IPO ownership structure. The results show that for IPO stocks with low offer prices, individual investors hold a relatively large fraction of shares compared with IPO stocks with higher offer prices. Furthermore, for low-priced IPOs, there is a negative relationship between offer price and breadth of ownership, showing that stocks with a low price can attract more investors than stocks with higher offer prices. However, there is also a size effect, with breadth of ownership being higher for larger firms. Overall, this study shows that the offer price of an IPO firm may have a moderate effect on its post-IPO ownership structure.

Original language	English
Publication status	Published - 2019
Externally published	Yes
Event	Southwestern Finance Association, 58th Annual Meeting, 13-16 March, 2019, Houston, Texas - Duration: 1980-Jan-01 → …

Conference

Conference	Southwestern Finance Association, 58th Annual Meeting, 13-16 March, 2019, Houston, Texas
Period	80-01-01 → …

Swedish Standard Keywords

Business Administration (50202)

Keywords

corporate finance
ipo
offer price
ownership structure
shareholder
sweden

1 Doctoral Thesis

Shareholders and cherry-picking IPOs: Studies on shareholders, initial public offerings and firm ownership structure
Abrahamson, M., 2020, Acta Universitatis Upsaliensis.
Research output: Types of Thesis › Doctoral Thesis

Open Access
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Cite this

@conference{06000419729c4c21ac0f101cee0622ae,

title = "Offer price and ownership structure: A study of shareholders in Swedish IPOs 2006–2016",

abstract = "This study uses the stock ownership records of Swedish firms and hand-collected Initial Public Offerings (IPOs) data to analyze the offer prices and underpricing of IPO shares and the relationship with the post-IPO ownership structure. The results show that for IPO stocks with low offer prices, individual investors hold a relatively large fraction of shares compared with IPO stocks with higher offer prices. Furthermore, for low-priced IPOs, there is a negative relationship between offer price and breadth of ownership, showing that stocks with a low price can attract more investors than stocks with higher offer prices. However, there is also a size effect, with breadth of ownership being higher for larger firms. Overall, this study shows that the offer price of an IPO firm may have a moderate effect on its post-IPO ownership structure.",

keywords = "corporate finance, ipo, offer price, ownership structure, shareholder, sweden",

author = "Martin Abrahamson",

year = "2019",

language = "English",

note = "Southwestern Finance Association, 58th Annual Meeting, 13-16 March, 2019, Houston, Texas ; Conference date: 01-01-1980",

}

TY - CONF

T1 - Offer price and ownership structure

T2 - Southwestern Finance Association, 58th Annual Meeting, 13-16 March, 2019, Houston, Texas

AU - Abrahamson, Martin

PY - 2019

Y1 - 2019

N2 - This study uses the stock ownership records of Swedish firms and hand-collected Initial Public Offerings (IPOs) data to analyze the offer prices and underpricing of IPO shares and the relationship with the post-IPO ownership structure. The results show that for IPO stocks with low offer prices, individual investors hold a relatively large fraction of shares compared with IPO stocks with higher offer prices. Furthermore, for low-priced IPOs, there is a negative relationship between offer price and breadth of ownership, showing that stocks with a low price can attract more investors than stocks with higher offer prices. However, there is also a size effect, with breadth of ownership being higher for larger firms. Overall, this study shows that the offer price of an IPO firm may have a moderate effect on its post-IPO ownership structure.

AB - This study uses the stock ownership records of Swedish firms and hand-collected Initial Public Offerings (IPOs) data to analyze the offer prices and underpricing of IPO shares and the relationship with the post-IPO ownership structure. The results show that for IPO stocks with low offer prices, individual investors hold a relatively large fraction of shares compared with IPO stocks with higher offer prices. Furthermore, for low-priced IPOs, there is a negative relationship between offer price and breadth of ownership, showing that stocks with a low price can attract more investors than stocks with higher offer prices. However, there is also a size effect, with breadth of ownership being higher for larger firms. Overall, this study shows that the offer price of an IPO firm may have a moderate effect on its post-IPO ownership structure.

KW - corporate finance

KW - ipo

KW - offer price

KW - ownership structure

KW - shareholder

KW - sweden

M3 - Paper

Y2 - 1 January 1980

ER -

Offer price and ownership structure: A study of shareholders in Swedish IPOs 2006–2016

Abstract

Conference

Swedish Standard Keywords

Keywords

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Research output

Shareholders and cherry-picking IPOs: Studies on shareholders, initial public offerings and firm ownership structure

Cite this