12. PE-backed IPOs: A pause in IPO activity in Nordic PE
Following a surge in IPOs in 2021, IPO activity across the Nordics almost stopped in 2022. 2013 was the last year in which fewer PE-backed IPOs were completed. Falling stock exchanges have closed the IPO market.
PE-backed IPOs in the Nordics was drastical reduced, as IPO activity in general was heavily reduced in 2022. The number of PE-backed IPOs fell by 86 %, from 59 IPOs in 2021 to 8 IPOs in 2022. Compared to the average for the previous five years, the number of IPOs was down 71 %.
It was not only Nordic PE-backed IPOs that experienced a decrease, as European IPO activity also fell in general. According to PWC IPO Watch, 102 IPOs were completed in 2022, with €15.6 billion in raised capital. By comparison, 422 IPOs were completed in 2021, with €75 billion raised. This is a decrease of almost 80 % compared to the year before, which illustrates the changing climate for IPOs.
Despite less IPO activity in the Nordics, Nordic PE-backed IPOs still make up a significant share of all European IPOs. Nordic PE-backed IPOs accounted for 7.4 % of European IPOs. Compared to 2021, the share decreased from 12 %, but this still represents a significant proportion of European IPOs.
When broken down by marketplace, one marketplace stands out (see complete list below). Seven PE-backed Nordic companies were listed on Nasdaq First North, six of which were in Sweden. One company was listed on main markets – more specifically, on Oslo Stock Exchange.
Largest listings during the year
Among the largest PE-backed IPOs in 2021 were the following companies:
- The most notable PE-backed listing was Vår Energi, which is a Norwegian petroleum company. This was the second largest listing in Europe in 2022 in terms of raised capital. Vår Energy is backed by HitecVision and had an offering value of €6.9 bn. It is one of the most valuable IPOs in Norway of all time.
- The Swedish provider of risk and crisis management solutions 4C Strategies was listed on Nasdaq First North in Stockholm. The company is backed by Priveq Investment, and the IPO valued the company at €115 million. It raised €50 million, making it one of the top 30 IPOs in Europe in 2022.
- The Finnish-based company Nordic Lights, backed by Sponsor Capital, was listed on Nasdaq First North in Finland. Nordic Lights manufactures work lights, headlights and signal lights. The IPO valued the company at €105 million.
- The Swedish deep-tech company LumenRadio was listed on Nasdaq First North in Stockholm. The IPO valued the company at €49 million.
Private equity-sponsored listings in 2022
| Company name | Home country | Sector | Phase | Fund manager | Stock exchange | Market cap (€m) | Quarter |
|---|---|---|---|---|---|---|---|
| Vår Energi | Norway | Energy | BO | HitecVision | Oslo Stock Exchange | 6,914 | Q1 |
| 4C Strategies | Sweden | Consumer | BO | Priveq Investment | Nasdaq First North | 115 | Q2 |
| Nordic Lights | Finland | Industrials | BO | Sponsor Capital | Nasdaq First North | 105 | Q3 |
| LumenRadio | Sweden | ICT | BO | Chalmers Innovation | Nasdaq First North | 49 | Q4 |
| Oneflow | Sweden | Other | VC | Spintop Ventures | Nasdaq First North | 27 | Q2 |
| Promimic | Sweden | Health Care & Life Science | VC | Chalmers Innovation, Karolinska Development, Almi Invest | Nasdaq First North | 19 | Q2 |
| BeammWave | Sweden | ICT | VC | Almi Invest | Nasdaq First North | 8 | Q1 |
| Learning to Sleep | Sweden | ICT | VC | Almi Invest | Nasdaq First North | 6 | Q1 |
Uncertainty creates a pause in IPO activity
“What always closes an IPO market is falling stock exchanges, and uncertainty about the way forward. No one will go out and expose themselves in an IPO process if they do not feel that the probability of success is very high”, says Fredrik Korterud, who is a Partner at Norvestor.
“I don’t think we will see any large-scale IPOs again until a large part of that uncertainty is removed”, he adds.