Nasdaq Launches New Leading Indicator for Sweden’s IPO Market

In January 2024, Nasdaq introduced the U.S. IPO Pulse Index as a pioneering tool for forecasting U.S. IPO trends. Building on this success, the exchange is now debuting the Nasdaq Stockholm IPO Pulse Index. This new index is designed to forecast IPO developments in Sweden over the upcoming four months, expanding its predictive capabilities to the Nordic market. 

Supporting Stockholm’s Strong Eco-System  

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

The Stockholm index was developed by Nasdaq’s Economic Research team, which analyzed over 50 data series to develop its methodology.

“The Nasdaq Stockholm IPO Pulse Index mirrors the construction of the U.S. version,” said Michael Normyle, U.S. Economist and Senior Director at Nasdaq, who works on the Economic Research team that developed the index. “Our team again found six indicators that reliably predicted shifts in IPO activity over the last two to three decades.”

The Stockholm IPO Pulse Index Is Based on Six Key Indicators  

The Nasdaq Stockholm IPO Pulse is comprised of six key indicators like the U.S. IPO Pulse Index but is customized to its unique local market.  

The six factors of the Nasdaq Stockholm IPO Pulse Index are:

1. Market Volatility: OMX 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

As with the U.S. index, the Stockholm version will be updated quarterly and aims to serve both investors and companies interested in listing on Nasdaq.

Learn more about The Nasdaq Stockholm IPO Pulse and access the whitepaper here.