Study of Initial Public Offerings – Performance of private equity backed Swedish IPOs, 2013-2022. 

Background: This study was done to evaluate the performance of Swedish private e quity (PE) backed initial public offering s (IPOs) in comparison to the market as a whole (SAX) and compared to their respective sectors. Listed companies that prior to the listing were owned or partly owned by private equity investors fall under the term PE backed IPOs.

Methodology: The study used financial data from the 10 th of December 2013 until the 6 th of July 2022. A total of 60 PE backed IPOs occurred during this period and have been analyzed. To fairly evaluate the performance of the IPOs, total return indices have been used. This assumes that net dividends are reinvested in each company. This was also applied to the market index and the respective sector indices.

The sectors in which the analyzed companies operated were “ Automobiles and Parts”, “Basic Resources”, “Construction and Materials”, “Consumer Products and Services”, “Energy”, “Financial Services”, “Food, Beverage and Tobacco”, “Health Care”, “Industrial Goods and Services”, “Retail”, “Technology”, “Telecommunication”, and “Travel and Leisure”.

Conclusion: While analyzing the excess median return it can be concluded that the PE IPOs perform in line with the overall market and sector indices over the five year interval and since listing, while overperforming them by over 20% over the one and three year intervals. While analyzing the excess average return the PE IPOs overperforms the market and sector indices over all time periods by about 50% ( average of excess average return).

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