Nasdaq European Markets sustains its strong position in the SME listings and sustainable debt market in 2023

Rhea-AI Summary

Nasdaq (NDAQ) welcomed 33 listings, including 7 IPOs, raising a total of EUR 431 million risk capital and EUR 11.6 bn in secondary offerings in 2023. Despite global economic uncertainties, the Nordic and Baltic regions maintained their position in capital markets, with Nasdaq Stockholm remaining one of the most successful listing venues in Europe. Nasdaq also celebrated its 130th company to transfer from Nasdaq First North Growth Market to Main Market. The Nordic and Baltic Sustainable Debt Markets grew by 33% from the previous year to EUR 63 billion, showcasing a focus on sustainability. In October 2023, Nasdaq launched Custom Basket Forwards to meet increasing market demand for a simpler and more efficient way of handling equity exposures.

Insights

Market Research Analyst

The Nasdaq European Markets' performance in 2023, with 33 listings and 7 IPOs, indicates a significant engagement in capital mobilization despite global economic uncertainties. The transition of 130 companies from Nasdaq First North Growth Market to the Main Market reflects the maturation of these entities, which is crucial for investors assessing the growth potential and stability of small to mid-sized enterprises (SMEs). The 43 percent average annual growth rate from First North to the Main Market is noteworthy, suggesting a robust incubation platform for SMEs that investors might find attractive.

However, the decrease in capital raised and the number of listings compared to the previous year could signal a cooling market or heightened investor caution. This trend requires close monitoring as it may impact the liquidity and future valuations of the companies listed on the Nasdaq European Markets. The resilience of the sustainable bond market, with a 33% increase, highlights a shift in investor preferences towards sustainability, which could influence future financial products and investment strategies.

Financial Analyst

The EUR 431 million raised in IPOs and EUR 11.6 billion in secondary offerings represent a decrease from the previous year's figures, which could be indicative of a more cautious investment climate or a normalization after a period of heightened activity. This shift in capital raising dynamics is important for investors to consider, as it may affect the stock market's growth trajectory and the availability of investment opportunities in the European region.

The emphasis on sustainability, with the Sustainable Debt Market growing to EUR 63 billion, is particularly relevant for financial analysts tracking the evolution of investment trends. The strong performance of green bonds, especially in Sweden, suggests a market that is increasingly prioritizing environmental considerations, which could have long-term implications for capital allocation and corporate funding strategies.

Economist

The data presented by Nasdaq indicates a shifting landscape in European capital markets, with a particular emphasis on sustainable finance. The Nordic and Baltic regions' focus on sustainability is aligned with global economic trends towards green investments. The growth in the Sustainable Debt Market underscores the region's potential to become a hub for green finance, which could have positive implications for economic development and environmental initiatives.

Moreover, the introduction of Custom Basket Forwards by Nasdaq in October 2023 addresses the market's need for more efficient equity exposure management. This innovation could enhance market efficiency and provide investors with more tailored investment tools, potentially stimulating market activity and contributing to the region's financial market sophistication.

• Nasdaq European Markets welcomed 33 listings, including 7 initial public offerings (IPOs), raising a total of EUR 431 million risk capital and EUR 11.6 bn in secondary offerings
  
• Nasdaq celebrated its 130^th company to transfer from Nasdaq First North Growth Market to Main Market

STOCKHOLM, Sweden, Jan. 08, 2024 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today presented its yearly statistics for Nasdaq European markets. Despite the uncertainties in the wider global economy, the Nordic and Baltic regions maintained their position in capital markets in several key areas, including Sustainable Debt Market and SME listings. In total, the Nasdaq equity markets in Sweden, Denmark, Finland, Iceland and the Baltic countries welcomed 33 listings, including 7 initial public offerings (IPOs), raising a total of EUR 431 million risk capital (2022: EUR 0.76 bn) and EUR 11.6 bn in secondary offerings (2022: EUR 16.6 bn). With 19 listings, Nasdaq Stockholm also remained one of the most successful listings venues in Europe in 2023.

“Our European Market Services team has worked tirelessly to keep driving our technology leadership, marketplace excellence and strong commitment to sustainability to create a world class capital market offering for both companies and investors in times of uncertainty. Nasdaq continues to perform a crucial role as a vibrant growth engine for northern European capital markets,” said Roland Chai, President of European Market Services, Nasdaq.

Nasdaq celebrated its 130^th switch from Nasdaq First North Growth Market to Main Market
Despite lower numbers in both capital raised and number of listings relative to previous years, Nasdaq remains the leading European exchange groups in terms of number of SME listings on its markets over the past years. Since the founding of Nasdaq First North in 2006, Nasdaq had its 130^th company to transfer from Nasdaq First North Growth Market to Main Market in December 2023. The 130 companies have grown and matured, presenting an average annual growth rate of 43 percent from the first day of trading on First North to the first day of trading on the Main Market.

“In the midst of economic headwinds, the market has remained challenging in 2023. Despite that Nasdaq has been able to maintain its position as a leading listings venue in Europe, especially for SME companies. Nasdaq First North is the leading SME market not only in terms of bringing companies to the market but also the evolution of companies over time in driving innovation and growth supported by both institutional investors and retail investors. We are pleased to celebrate the 130^th switch from First North to our Main Markets,” said Adam Kostyál, Head of European Listings at Nasdaq.

Continuing to enable sustainable growth
The Nordic and Baltic Sustainable Debt Markets grew by 33% from the previous year to EUR 63 billion (2022: EUR 47.5 bn) during a period of turbulence and relatively low activity in overall Nordic debt market. This is a testament to the ever-growing focus on sustainability amongst investors and companies alike.

Sweden is the most active sustainable bond market in the Nordic and Baltic countries and has historically been dominated by issuers from the real estate sector. In fact, 2023 marks the 10^th anniversary of the worlds’ first green corporate bond, which was issued by the Swedish real estate company Vasakronan. In 2023, new sustainable bond listings grew by 39% in Stockholm, which clearly shows how the concept of green bonds has become an integral part of the broader bond market and that the sustainable bond market is more resilient than ever before.

“It is pleasing to see that our Nordic and Baltic markets remain focused on channeling capital towards sustainable projects and assets also in time of uncertain market. The Nordic and Baltic sustainable bond market is well positioned to grow even faster in coming years when interest rate levels are expected to taper off. We look forward to seeing how the market responds to the new macro environment,” said Fredrik Ekström, President of Nasdaq Stockholm and Head of European Fixed Income.

In October 2023, Nasdaq launched Custom Basket Forwards. The Custom Basket Forwards solution meets the increasing market demand for a simpler and more efficient way of handling equity exposures by utilizing standardized contracts on the regulated market. Custom Basket Forwards enable investors to create a Forward contract on a customized equity basket that is defined by return type, currency, and selected from a European universe of equities, totaling around 1,700+ stocks from 15 countries.

For more details and milestones on Nasdaq’s European market operations in 2023, please see below.

About Nasdaq:
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.

Nasdaq Media Contact
Maarit Bystedt
tel. +358 9 6166 7274
maarit.bystedt@nasdaq.com

SELECTED 2023 EUROPEAN HIGHLIGHTS
LISTINGS

• Nasdaq welcomed 33 new equity listings (among them 7 initial public offerings), raising a total of EUR 431 million. Furthermore, 10 companies switched from Nasdaq First North Growth Market to Nasdaq Main Market. A total of 1,218 companies are currently listed at Nasdaq in Europe of which 687 on Main Market and 531 on Nasdaq First North Growth Market.
• Market by market, Nasdaq Stockholm had 19 listings, Nasdaq Iceland 5 listings, Nasdaq Copenhagen 3 listings, Nasdaq Helsinki 3 listings, Nasdaq Tallinn 2 listings and Nasdaq Riga 1 listing.

TRADING

• Nasdaq saw trading volumes decrease in 2023, with share trading decreasing by 17% to a daily average of EUR 2.9 billion (2022: 3.6 bn) across all markets.
• Nasdaq maintained a market share of 71% (2022: 71%) of lit and auction trading in its listed shares, while continuing to reinforce its leadership in the Nordic derivatives market, including Norway, where Nasdaq has a achieved a 82% market share in single stock options.

SUSTAINABILITY

• The Nordic & Baltic sustainable debt markets grew to EUR 63 billion by the end of 2023 (2022: EUR 47.5 bn).
• Nasdaq majority-owned Puro.earth, the world’s leading crediting platform for engineered carbon removal, issued 128,301 CORCs with durability of more than 100 years. Since Puro.earth was founded in 2019, its supplier partners have durably removed nearly half a million metric tons of CO2 from the atmosphere.

PRODUCTS & PARTNERSHIPS

• Nasdaq Clearing is about to open up for clearing of Interest Rate Swaps (IRS) in EUR, DKK and NOK, in addition to the existing clearing of IRS in SEK. Furthermore, the initiative from the Swedish Central Bank (Riksbanken) offering central clearing parties deposit and lending facilities provides resistance to the clearing market.
• Nasdaq has launched Custom Basket Forwards – an innovative derivative product addressing the rising demand for a simpler and more efficient way of handling tailored equity exposures. Nasdaq Custom Basket Forwards offer a cost-efficient alternative, combining bespoke elements with the benefits of central counterparty clearing and trading on a regulated market. With the launch of Custom Baskets Forwards more clients are given access to a simple and efficient solution for ex. ESG & climate investments, thematic investing, ETF replications, tailor-made indexes, and equity financing.
• In November, Nasdaq launched a pioneering new technology that securely digitizes the issuance, settlement, and custody of carbon credits. It will be provided to market infrastructures, registry platforms, and other service providers globally. Alongside the launch of the service, Nasdaq announced a new technology partnership with Nasdaq majority-owned Puro.earth, a world-leading standards and registry platform for engineered carbon removal, to register CO2 Removal Certificates, or CORCs. The registry tracks the issuance, retirement, and the transfer of the assets, providing full traceability and transparency to avoid double counting carbon removal projects.
  

RETAIL ENGAGEMENT

• Nasdaq’s role as an exchange is to promote public markets and help educate investors of all sizes, which we do through our financial literacy initiative. Together with more than 20 partnerships and organizations we seek to promote our common purpose of financial progress for all. In 2023, we have driven more than 70 events with our partner organizations and educated thousands of investors across our asset class portfolio.
• Nasdaq Derivatives Academy was launched in the Nordics to increase knowledge of equity derivatives and since its start more than 2,800 private investors and 200 professionals have signed up for the program. In November 2023, the education program was expanded to include Nasdaq Clearing Essentials which is specifically dedicated to professionals working in back-office roles.

NDAQG

FAQ

How many IPOs did Nasdaq welcome in 2023?

Nasdaq welcomed 7 initial public offerings (IPOs) in 2023.

How much capital was raised in risk capital in 2023?

Nasdaq raised a total of EUR 431 million risk capital in 2023.

What was the total amount raised in secondary offerings in 2023?

Nasdaq raised EUR 11.6 billion in secondary offerings in 2023.

How many companies transferred from Nasdaq First North Growth Market to Main Market in 2023?

Nasdaq celebrated its 130th company to transfer from Nasdaq First North Growth Market to Main Market in 2023.

What was the growth rate of the 130 companies that transferred from Nasdaq First North Growth Market to Main Market?

The 130 companies presented an average annual growth rate of 43 percent from the first day of trading on First North to the first day of trading on the Main Market.

What was the growth percentage of the Nordic and Baltic Sustainable Debt Markets in 2023?

The Nordic and Baltic Sustainable Debt Markets grew by 33% from the previous year to EUR 63 billion in 2023.

What new solution did Nasdaq launch in October 2023?

In October 2023, Nasdaq launched Custom Basket Forwards to meet increasing market demand for a simpler and more efficient way of handling equity exposures.