IPO's Short- and Long-term Performance : Current Evidence for Switzerland

The Swiss capital market is an extraordinary liquid and efficient market with increasing importance in times of financial instability in Europe and the world. However, there is no study that provides current evidence on IPO-pricing in Switzerland. Therefore, we analyze in this study the short- and long-run performance of Swiss IPO's from 2000 to 2014. The observed first-day underpricing is 8.4% on average, which we explain with high IPO activity and with a lack of competition between the Swiss investment banks. On the long-run, the IPO seem to be fairly priced.