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Sweden bags second place among Europe’s main listing venue post- Brexit. Around 122 companies raised about $14 billion via initial public offerings in Stockholm.
FREMONT, CA: Sweden takes the second position in Europe’s main listing venue post- Brexit by hosting various listings ranging from Volvo Car AB to animal healthcare company Vimian Group AB and investment firm Strosken Group AB. The data compiled by Bloomberg showcases how around 122 companies could raise a total sum of $14 billion through the public offerings in Stockholm. Elevated valuations and resilient stock indexes were the binding forces that enabled Sweden to top the global listings. In 2021, the benchmark OMX Stockholm 30 index rallied 25 percent, making it Europe’s top performer of the year.
Experts claim the secret formula of Stockholm is its investor base and several small institutional investors and a retail culture of investing savings into equities meant that there is a wide range of IPO buyers. Renewable energy, tech and life sciences startups also add to Sweden’s source of IPOs. Data show that around 60 percent of new listings on OMX Stockholm were from the tech and healthcare sectors. Although 2021 seemed a favorable year for Stockholm, experts are apprehensive about the coming year-2022. Though companies have gone public, they are not well capitalized and new shares need to be issued. The experts are worried if the market will be able to absorb the need for funding that exists among some of these small businesses.
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With an oversupply of public offers this year, traders have become extra selective and this has made things worse with mounting market problems ranging from supply chain snags to higher inflation. Similar to several smaller markets, Sweden has also witnessed some of its promising entrepreneurs search for opportunities elsewhere. A manufacturer of oat milk named Oatly AB went public this year in the US, following in the footsteps of the music streaming company Spotify Technology SA.
The most debatable question is whether Europe’s most dear unicorn, the fintech Klarna will follow suit or select its residence base.
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