On 11th of February 2021, the Swedish gaming accessory company Fractal Gaming went public on First North Stockholm. We are going to take a closer look at their prospectus and the details of their IPO. Their prospectus is available on their website https://group.fractal-design.com/ipo/about-the-ipo/ and is available as an attachment for this assignment. Most answers to the questions below can be found in this prospectus (the rest in the course materials).

a. How did the ownership structure look like before the offering? (Exclude all owners with less than 5% ownership, if any).

b. How would the ownership structure look like after the offering if the overallotment option was not exercised? (Exclude all owners with less than 5% ownership, if any).

c. Are there any new shares offered?

d. Describe briefly the book-building procedure used to set an offer price and what the offering price was.

e. What was the first-day return for the investors participating in the IPO? Use the attached excel-file which has historical stock prices for the Fractal Gaming stock after its introduction on February 11th 2021. The data is drawn from Yahoo! Finance. Answer in Percent.

f. What has the return been for investors who participated in the IPO by December 31st 2021? Use the same data as in part e. Answer in percent.

g. What IPO puzzle explains the high first-day return of Fractal Gaming, and what is the Winners Curse?