Nasdaq Stockholm to set record with 5 listings in one single day

[STOCKHOLM] Nasdaq Stockholm will set a record on Wednesday as no less than five companies will be listed in one single day, the latest evidence of just how red-hot Sweden's market for initial public offerings is at the moment.

On June 21, B&B Tools AB plans to spin off its Momentum unit by listing it on the Stockholm main market while Bonesupport AB will start trading after its IPO. At the same time, Sedana Medical AB and Fastighets AB Trianon plan to IPO on Nasdaq's alternative First North market, while Quartiers Properties AB will move its shares to First North from the NGM Nordic MTF market.

That marks the first time five listings have taken place in one single day on Nasdaq Stockholm, and is a new record also in Europe as a whole, according to Adam Kostyal, head of European listings at Nasdaq Inc. It's also testament to the strong listings environment in Sweden, which has set Nasdaq's Nordic markets on path to a fresh record this year in terms of the number of listings.

There has been 60 listings on Nasdaq's Nordic main and First North markets so far this year, including 45 IPOs. That exceeds the 50 listings in the first half of last year and compares with a record 97 in 2015 and 94 in 2016.

"The stock market is very beneficial right now, out of a listing perspective, with low volatility, relatively low interest rates, and an understanding and appetite regarding listings from companies, advisers and investors," Mr Kostyal said in a phone interview Monday. That, combined with good corporate results, "creates an appetite and activity regarding listings" in the region, he said.

There are also "IPO windows," with one of those taking place right before the Swedish midsummer weekend, Mr Kostyal said. After that, the market cools down a bit over the summer, followed "by an active autumn," said Kostyal.

"The autumn looks very active and promising," he said. "We see strong interest so if things continue the way they are right now regarding many of the parameters such as low interest rates, then there's nothing to keep 2018 from becoming a good year as well for listings. But this is an exceptional year."

BLOOMBERG