Finnish IPOs: Comparative Analysis with the Market Index (2000-2023)

Abstract

This thesis examines the performance of Finnish IPOs compared to the market index. The material consists of companies publicly listed on the Helsinki Stock Exchange between 2000-2023. The returns of the IPOs are compared to the returns of the index at different time intervals. The thesis also examines whether there are differences in the first-day returns of companies listed during hot and cold IPO markets.

According to the study, the median returns of IPOs are higher than the market returns in short time periods, but this overperformance vanishes in a longer period. The majority of IPOs have had worse returns the market index in one- and two-year periods. Hot IPOs have a higher average return than cold IPOs in the short term, even though cold IPOs have a slightly higher median return.