Analysis of the equity markets

Recent studies and stakeholders have pointed out for some time that the Danish market for small and medium size IPOs is less well functioning than in e.g. Sweden. However, the present studies takes a broader view on all markets for equity (M&A, minority trades as well as IPOs).

Our study finds that Sweden is excelling compared to Denmark, not just in small and medium size IPOs, but also in M&A markets and minority trades. In particular, our main conclusions are:

• The Swedish markets for equity are far larger than the equivalent markets in Denmark. Part of this difference is due larger PE, VC, angle investment markets in Sweden.
• Compared to Norway, the Netherlands and Germany the difference is less pronounced. However, the Danish market for market for minority trades comes in last when accounting for differences in GDP.

Hence, although Sweden is very similar to Denmark in many other aspects, Sweden has a far larger market for risk capital and thus a far better basis for growth.

The study is commissioned by the Danish Ministry of Industry, Business and Financial Affairs