Nasdaq Celebrates 130 Switches From Nasdaq First North Growth Market to Nordic Main Markets

At a time when the ECB is lamenting “underdeveloped capital markets in Europe mean young, disruptive firms that drive innovation have less access to the quality of financing they need¹”, Nasdaq Nordic celebrates the 130^th company to graduate from First North Growth Market to the Main Market when PowerCell Sweden transfers from First North to Main Market in Stockholm, demonstrating to Europe how successful equity capital raising can be accomplished. The growth of Nasdaq First North has been a shining light on how to deliver capital markets growth to support European companies seeking equity and debt financing in liquid domestic markets.

Well-functioning capital markets is crucial for Europe to remain a continent of growth and innovation and the aim of the Capital Markets Union is to get investments and capital flowing across the EU, benefitting consumers, investors, and companies regardless of where they are located. Making capital accessible must therefore be a key policy priority in the creation of sustainable and inclusive growth across Europe.

Positioned as a leading European SME Market, Nasdaq First North Growth Market serves as a catalyst for entrepreneurs, providing essential capital and fostering sustainable growth. The market is surrounded by a dynamic ecosystem serving as a financial bridge that connects entrepreneurs with both European and international investors. Through the eco system they can access equity capital to accelerate their growth journey. Meaning, innovative and growing business in industries such as med tech, financial technology or green transformation can access the capital needed to achieve their goals.

Since the launch of Nasdaq First North Growth Market, an ecosystem that strongly supports the growth journey of small- and medium-sized companies in Europe, there have been 130 companies that have matured and transferred over to our Nasdaq Nordic Main Markets with an accumulated market cap of over 40 billion euros and average yearly growth rate in market cap of 43 percent. This milestone further positions Nasdaq’s European markets as an important platform for companies to reach investors and a catalyst for economic growth across European capital markets.

Commenting on the 130th company to switch to our Main Markets, Nasdaq’s head of European Listings Adam Kostyál said:” After listing on Nasdaq First North, PowerCell Sweden has grown remarkably, and we are pleased to see them now to take the step from our First North Growth Market to the Main Market. We are happy to provide them with the increased visibility and investor awareness that come with a listing on the Main Market.”

Beyond its role in providing financial resources, Nasdaq First North Growth Market actively cultivates a supportive environment for entrepreneurial endeavors, offering a platform for showcasing potential and attracting investment. Notably, the market has played a crucial role in bringing to life companies that might not have existed without its support. By facilitating access to capital and providing a marketplace for trading shares, Nasdaq First North Growth Market has been instrumental in transforming entrepreneurial dreams into successful ventures.

"With First North, we've built something truly special. A lot of these companies might not have had the chance to become a Main Market company if it weren't for their start on First North. We are proud to have supported these companies on their journey to grow their businesses. Reaching 130 switches is a milestone, but we're not stopping there. We're committed to supporting 130 more transitions and beyond, continuing to back these companies as they reach for their goals." – Adam Kostyál, Head of European Listings.

An analysis carried out by Nasdaq on data from 2014 to 2019 that includes 3,648 Swedish companies, either listed on First North Stockholm or unlisted with sales of SEK 10–500 million, shows that SME companies listed at Nasdaq First North Growth Market outperform its non-listed peers significantly in terms of employment rate and revenue growth. On average during period, listed companies in the study created twice as many jobs than its unlisted peers and had almost twice the annual revenue growth.

Nasdaq research strongly indicate that listed companies ability to fund business needs, enhance productivity or fulfill business strategies, in combination with an expansion of the shareholders who might have higher expectations on returns, seems to increase the company’s ability to grow its business and impact employment positively. The access to the capital market also reduces the economy’s reliance on bank lending and enables companies to diversify both the sources of the capital they use and the term over which they allocate funding.

After growing on First North, a transfer to the Main Markets is the real proof of a successful growth journey with great new opportunities to benefit from greater institutional and international investor interest to access funds for expansion, investment, innovation. This, in turn, stimulates productivity, creates job opportunities, and increases overall prosperity in society, which can drive progress for new businesses and technologies to emerge from this environment.