First North in Denmark: Limitations and Opportunities From a Legal and Economic Perspective

Jon Pommergård Lind

Student thesis: Master thesis

Abstract

This paper examines the lacking success of the First North market in Denmark compared to Sweden, both from an economic and legal perspective. Many growth companies choose to leave Denmark, based on the fact that it’s too difficult for them to raise capital for further expansion. These companies therefore take jobs and potential tax payments with them and leave Denmark with a problem. The present paper uses existing literature, own collected data material as well as interviews to analyze 1) economic considerations and consequences that drive companies to choose to go public, 2) legal issues as well as to compare cross-border legislation and 3) applicable law, as well as to make proposals for how existing law can be improved. The results of the analysis indicate that current legislation reduces the activity on First North, which makes it less attractive for companies and investors to act in this market. Companies will increase their listings on First North if more investors and advisors see First North as an attractive investment or business case, but first it is up to the government to establish the necessary legal framework for an attractive First North before Denmark can experience the same success as Sweden.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2018
Number of pages85
SupervisorsPeer Schaumburg-Müller