12. PE-backed IPOs: Barely any activity in 2023, more optimism for 2024
After a notable decline in PE-backed IPOs in 2022, IPO activity in the Nordics came to a near halt in 2023, with only one PE-backed IPO occurring throughout the year. This downturn in PE-backed IPO activity mirrors the broader slowdown observed in the Nordic IPO market overall.
PE-backed IPO activity in the Nordics saw a decline in 2023, with IPO activity overall experiencing a significant reduction. The year witnessed just a single PE-backed IPO: the listing of Beerenberg Corp. on Oslo Børs, supported by Segulah Advisors. This is a stark contrast to the average of 22 PE-backed IPOs in the Nordics over the past five years. The downturn was not exclusive to Nordic PE-backed IPOs; European IPO activity also decreased overall. Although the number of European IPOs saw a slight increase, the amount raised through IPOs fell by 35 percent, as reported by PWC IPO Watch, highlighting a shifting landscape for IPOs. IPO activity in the Nordics are in stark contrast to 2021, when Nordic PE-backed IPOs made up 40 percent of European IPOs.
Positive outlook for 2024?
When asked about when we can expect the IPO window to open, experts in the industry share an optimistic view:
“Although the IPO market remains closed, I guess that a few solid cases being brought to the market may re-open this market again. The current increased share prices in the technology segment could serve as a catalyst for the market’s revival”, says Lars Dybkjær, Managing Partner at Gro Capital.
“For larger assets with a strong rationale for a public listing we would not be surprised to see an open window in 2024”
Also Equip-partner, Torkild Hebbert Haukaas shares the optimistic view:
“An easing of global monetary policies should drive an improvement in both the M&A market and for IPOs. The dry powder in PE-funds can potentially mean an earlier improvement in the M&A market”, says Torkild Hebbert Haukaas, Founding Partner of Equip.