Nasdaq announces the launch of the Nasdaq Stockholm IPO Pulse, a new leading indicator of IPO activity in Sweden. This new indicator blends six fundamental drivers into an index that reliably leads the turns in the Swedish IPO cycle quarterly.

The Nasdaq Stockholm IPO Pulse shows a 2024 upturn in IPO activity, which has already tripled from its recent low in September 2022. Looking forward the forecast shows a continued increase over the next several months.

“Nasdaq Stockholm is a leading European marketplace with the deepest capital markets on the continent, driven by the country’s robust investment culture. The introduction of the Nasdaq Stockholm IPO Pulse serves as a significant indicator for the direction in which the rest of Europe is heading.” said Adam Kostyál, President of Nasdaq Stockholm.

The Sweden IPO Pulse mirrors the methodology of Nasdaq’s US-focused IPO Pulse, testing more than 50 series and finding six leading indicators that theoretically and empirically lead shifts in IPO activity over the last three decades, with few false alarms or missed turns. One key difference between the US and Sweden IPO Pulses is that the US version uses only US data, while the Swedish version incorporates some broader European data. This is because, given the interlinkages between Sweden and the rest of Europe, broader European data is relevant to Sweden’s IPO activity.

“We launched the Nasdaq IPO Pulse tracking US markets in the beginning of this year to empower corporates and investors with a data-driven forecast of how receptive the markets may be to new issuances in the near-term. We are very happy to now expand our index with the Nasdaq Stockholm’s IPO Pulse index forecasting the near-term development of the Swedish IPO market which is pointing upwards for the coming months” said Phil Mackintosh, Chief Economist, Nasdaq.

The data included in the index captures a broad range of factors that contribute to the decision to IPO:

1. Market Volatility: S30 1-Month Realized Volatility (6-Month Trailing Average)
2. Recent Returns: Stoxx 600 Price Annual Growth
3. Valuations:  Stoxx 600 Enterprise Value to Sales Ratio Annual Growth
4. Macroeconomic Growth: Swedish Manufacturing PMI
5. Consumer Sentiment: Swedish Consumers’ General Economic Situation Over the Next 12 Months
6. Nasdaq’s Proprietary IPO Data

To learn more about the Nasdaq IPO Pulse Index, please visit our website or read the detailed whitepaper about the innovative indicator for IPO activity.

Source: Nasdaq