We investigate whether the sustainability profile of a firm affects the terms at
which the firm list on a stock market. Given the evidence that sustainable firms
have a lower cost of capital, we expect this to also be reflected in the issue
terms at an IPO. The laboratory for our investigation is new issues at Euronext
Oslo. The average underpricing in the sample is in the 3%-4% region.
Surprisingly we find little evidence of differences linked to the environmental
stance of the firm. An implication is that the (negative) premium on green stocks
(greenium) is lower in magnitude than previously thought. We also provide some
evidence on changes in IPO methods, showing that more companies are choosing a pure
listing, particularly for firms listing on the less regulated market places.