What Europe can learn from Sweden's booming IPO market

Core Viewpoint - The Stockholm Stock Exchange is currently the leading market in Europe for initial public offerings (IPOs), raising nearly $2 billion in 2025, significantly outperforming other major financial hubs like London, Frankfurt, and Madrid [1][2]. Group 1: Market Performance - Companies listed in Sweden have raised nearly $2 billion in 2025, which is more than eight times the volume seen in London [1]. - The IPO activity in Sweden is highlighted by upcoming high-profile listings from Verisure and NOBA, indicating a robust market environment [2]. - Despite the current boom, the amount raised in 2025 is still far from the all-time peak of over $11.5 billion achieved in 2021 [17]. Group 2: Investment Culture - Sweden's success in the IPO market is largely attributed to a strong national "equity culture," with about 70% of household wealth held in equity, compared to the EU average of 59% [5]. - A significant portion of the population, approximately seven in ten residents, hold investment funds directly, with only about 10% of their financial assets in cash or bank deposits, the lowest in Europe [5][6]. - The cultural acceptance of equity investment is supported by decades of government policy and regulation, fostering a mature investment ecosystem [6][7]. Group 3: Ecosystem and Support - The local capital ecosystem in Sweden is characterized by a high participation of retail and family office investors, as well as institutional capital managing savings and pension assets [8]. - The efficient IPO process benefits from a consistent deal flow and the involvement of "cornerstone" investors, which provides early quality assurance for new public offerings [10][11]. - A steady supply of companies backed by private equity and venture capital is contributing to the pipeline of potential IPOs, with private equity firms ensuring their portfolio companies are "IPO-ready" [12][14]. Group 4: Future Outlook - The outlook for the IPO market in Sweden remains positive, with expectations for a significant increase in activity in 2026 across the Nordics [18]. - Investors are currently selective, focusing on track records and prospects for profitable growth, but confidence in the upcoming pipeline is strong [17][18].