An Analysis of the Market for IPOs of SMEs in Denmark

Rebecca Melissa Lip & Marlene Louise Toft

Student thesis: Master thesis


This thesis focus is to identify and investigate why danish SMEs don’t use IPOs as a way to raise capital in Denmark, in the same order of magnitude, as its seen in Sweden. SMEs are known to be small companies who wants to grow, and an important element in growth is capital. Capital can enable the company to grow in terms of expansion of business, investments, and an increased amount of employees. By analyzing the terms and rules that applies for the listing of companies in Denmark will it be possible to access whether the rules are designed in such a way that they enable an attractive stock market for the companies. The legal part of this thesis also examines the rules surrounding the danish tax law that may affect investors in relation to their desire to invest, which may have an impact on the companies, and their use of IPOs as capital acquisition. This thesis also analyze the different economic factors, that can have a direct significance in relation to companies wanting to be listed. One of the factors that can be of importance to the companies is the investors, both the private and institutional investors. The advisors, including Certified Advisors, affiliated with the company are also important in terms of whether companies consider listing as attractive. The number of advisors, and their experience may also be an important factor. In the third chapter the findings and conclusions from both the legal and economic parts are combined in an attempt to make recommendations and solutions that are thought to be able to change the problem of the lack of stock listings of SMEs and which can have a positive impact on the society in general. Finally, it will be concluded why so few SMEs choose an IPO in Denmark and how a positive change can be created.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2018
Number of pages112
SupervisorsPeer Schaumburg-Müller & Caspar Rose