Growing Opportunity in the DACH Region Through Nasdaq’s First North Growth Market


To talk about the rising alternatives for corporations in the DACH area (Germany, Austria and Switzerland), Senior Vice President and Head of European Listings, Adam Kostyál, sat down with us to speak about how Nasdaq’s First North Growth Market helps small-medium sized enterprises (SME’s) in the area develop their companies.

What is fascinating about corporations primarily based in the DACH area?

The DACH area has been underserved when accessing the public markets at an earlier stage. While we proceed to see some large corporations with nice, scalable enterprise fashions and good governance, seasoned entrepreneurs are annoyed that they aren’t in a position to record their corporations on their native markets. But in the Nordic area, there is a robust understanding that our market is punching above its weight and will doubtlessly serve corporations in the DACH area as properly. This mixture of lack of help—from the public market perspective— and good entrepreneurs with scalable, well-run enterprise fashions, is one thing that we’re in search of in phrases of attracting extra corporations to the First North Growth market.

What are the advantages of a Nasdaq First North Growth Market itemizing for a global firm?

For a global progress firm, itemizing on the First North Growth Market means they will diversify their progress mannequin by leveraging the alternate overseas. Beyond simply elevating capital, they get liquidity, they get visibility, transparency, credibility, all these totally different dynamics, that are crucial for a small to medium sized corporations.

What we will provide them, from a Nasdaq Stockholm perspective, is the Nasdaq model and the Nasdaq attain in phrases of credibility and visibility. But, extra importantly, they will additionally entry the ecosystem of comparable corporations, which the market is in and invested in. Therefore, they won’t be the solely ones listed on the market. On the opposite, they are going to be in the group of comparable corporations inside related sectors, and they’ll have a really educated market to work with as they proceed to develop.

Tell us extra about the 2021 document 12 months for Nasdaq’s European Markets

2021 was the end result of many energetic years. Year after 12 months, the Nasdaq stock market has confirmed to be the most energetic market ever in Europe in phrases of the variety of corporations itemizing on the alternate.

Our power continues to be our capacity to record small to medium sized progress corporations.

It’s vital to grasp that small to medium sized progress corporations would not have the identical alternate options {that a} bigger firm does. What differentiates our market is that we do these micro, small and mid-sized IPOs versus the bigger offers which might be required in different markets; these corporations make our document years.

Last 12 months was an ideal storm in the sense that you just had very favorable market environments, many corporations that have been prepared for the public market and an enormous urge for food from traders for brand spanking new corporations.

With the understanding that these are very risky instances now, the corporations that are actually on the platform are in an excellent place to leverage it to lift extra capital, to diversify their progress by acquisition and have extra credibility and visibility then a lot of their unlisted friends.

How do you suppose the market will evolve throughout 2022?

We’re going by instances nobody can relate to. It’s one factor coping with inflation, however with inflation and battle, I do not suppose anybody in our technology has skilled it. But, for those who take a look at corporations which might be on our platform, it is clear they’re benefiting from entry to the capital markets in a means that unlisted corporations don’t. Therefore, they will diversify the means they develop and help their progress and maintain their progress throughout these robust instances.

I might say this volatility is impacting everybody, however definitely corporations which might be listed with us are in a greater spot to have the ability to help progress by the capital markets. Companies that wish to come to market are most likely ready to see extra stability to set an acceptable worth to entry the market on. But total, the curiosity stays excessive, each for our progress market, Nasdaq First North and our important market.

German retail firm Rebelle not too long ago turned the first “green” IPO as they utilized for a inexperienced designation when itemizing on Nasdaq First North Growth Market. What are the advantages of making use of for a Nasdaq Green Designation?

I feel certainly one of the key tendencies that the markets have been discussing for the previous few years is the subject of Environmental, Social, Governance (ESG). For one factor, if an organization can’t inform their ESG story in a reputable means, there is a threat that they may miss out on traders. We felt it was our position to assist corporations to inform that story.

We centered on the “E” in this context. We labored with specialists to outline a brand new categorization, Nasdaq Green Designations, which permits corporations to outline themselves as inexperienced.

If an organization meets these necessities, they will outline their firm as a inexperienced firm, based on the requirements that we’ve set.

The CCO and founding father of Rebelle, Cécile Wickmann stated, “We have chosen Nasdaq First North Growth Market due to its growing focus on ESG impact with strong appreciation for sustainable business models. This and the international and vibrant environment of the Swedish stock market for growing tech and small cap Companies gave us a very welcoming feeling and pursuing this opportunity last year.”

Our first Green Designation corporations are already telling us the way it has helped them inform a clearer story in the context of ESG to their traders, to their workers and their departments.

We’ve seen elevated curiosity, particularly for small, medium sized corporations, as a result of they lack the sources to inform an ESG story resulting from the complexity of normal ESG reporting requirements. But we have been in a position to set clear requirements for these corporations to say whether or not they achieved them or not.

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