Outlook for the Nordic IPO market for H2 2024
Despite the relatively low volumes in H1 2024, there is a sense of optimism in the Nordic countries regarding the IPO markets as we move towards the second half of 2024 and the beginning of 2025. The European Central Bank decided to cut the interest rate in June and further interest rate cuts are expected by the market, which may potentially stimulate market activity. However, geopolitical risks remain a concern. The political uncertainty with major elections in some European countries and the US, coupled with a troubling geopolitical situation, could pose a downside risk to the outlook.
Nonetheless, we experience that the number of companies planning and preparing for IPOs is on the rise in all Nordic markets. It is worth noting that there is still a valuation disconnect between companies seeking to go public and investors. The expectation for the latter part of 2024 is that the listing windows will continue to be narrow, and it is important to remain well prepared and poised to act promptly when the opportunity presents itself.
Second half of the year began with a demerger transaction in the Finnish market
On the first day of July 2024, the trading commenced in Kalmar Oyj’s class B shares on the Nasdaq main market in Finland as a result of the demerger of Cargotec Oyj. First day market cap of Kalmar’s listed class B shares was approximately €1.4 billion.
Nordic IPO markets in H1 2024
The Nordic IPO market activity in H1 2024 increased slightly with 13 IPOs and direct listings completed, compared to H2 2023 of 10 and H1 2023 of 11 IPOs and direct listings. During H1 2024, proceeds of €654.9 million were raised in connection with IPOs and direct listings, compared to €500.0 million in H2 2023 and €401.3 million in H1 2023. In addition to IPOs and direct listings we saw list transfers and changes between listing venues as well as other new listing transactions related to spin-offs and reverse takeovers in the Nordic markets.
During the first half of 2024, there was one new listing transaction in the Finnish market. Kempower Oyj transferred from Nasdaq First North Growth Market to Nasdaq main market in June. Before the transfer, Kempower Oyj had been listed on Nasdaq First North Growth Market Finland since December 2021.
Sweden continues to be the Nordic country with the highest number of IPO related activities with almost as many completed IPOs in H1 2024 compared to the full year 2023. Sweden is further experiencing higher levels of activities compared to 2023 in the form of preparatory work for upcoming listings planned for H2 2024 and 2025. In terms of volume, the Norwegian IPO market saw less activity than the Swedish market, however, it raised the most proceeds, primarily due to capital-intensive businesses in the energy and real estate sectors.
