Deutsche Bank: 2023 Should Bring More Nordic IPOs

Nordic IPOs are likely to do better before the first half of next year is over, according to statistics from Deutsche Bank, compared to the lull in the region now.

The area was the hotspot for new listings last year, but slowed down lately, Bloomberg reported Monday (July 11). The report said that there’s been a mass drop in equity valuations and a lot of turmoil around the region’s tech-focused startup scene.

Jan Olsson, who tracks Norway, Denmark, Finland, Iceland and Sweden for the lender, said there likely wouldn’t be a long-term negative effect on fundraising.

He said the Nordic region has a “very dynamic” market for startups, and and the present downturn won’t change that.

The Nordic region, as in many other markets, has seen a drop in IPOs and other types of equity capital market transactions, compared to the strong showing in 2021 that had Sweden as the leader of the continental European IPOs.

Rising interest rates and recession fears have cut down on investor appetite for IPOs around Europe.

But despite that, some companies have been able to rise above that, including Northvolt, the Swedish battery maker, which got $1.1 billion in funding on a valuation of $12 billion from last year.

Northvolt Chairman Carl-Erik Lagercrantz has said an IPO is still likely to come out in the next two years.

See also: Russian Invasion Prompts Companies to Rethink IPOs

PYMNTS has written that businesses looking at IPOs have had to curb those plans for various reasons in the last six months, including Russia’s attack on Ukraine.

American firms pulled $1.17 billion in equity capital markets transactions during February, which was an increase from the $350 million in deals ended at the same time in the year prior, per data from Dealogic.

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