Private equity and venture capital investors name 54 potential listing candidates – Is the IPO window about to open soon?

Annually, the Finnish Venture Capital Association publishes a list of Finnish portfolio companies that, according to their investors, have the potential to go public within the next five years. This year’s list comprises 54 companies spanning various industries and sizes.

”This diverse group of companies includes both traditional IPO candidates and early-stage technology companies that private equity and venture capital investors believe have the potential to go public in the near future. In recent years, we have already seen startups like Spinnova and Betolar go public on the Nasdaq First North Growth Market. Therefore, it’s worth keeping a close eye on the smaller companies on this list as well” notes Anne Horttanainen, Managing Director of the Finnish Venture Capital Association.

Between 2016 and 2023, one-fifth of the companies listed on the Helsinki Stock Exchange had appeared on FVCA’s list of potential IPO candidates before announcing their IPO intentions.

The list has been compiled through a survey targeting Finnish private equity and venture capital investors since 2016, with the aim of highlighting unlisted companies that private equity and venture capital investors see as potentially taking the next step towards the stock exchange. The final decision to go public always depends on various factors.

“Even if a company is IPO-ready, decisions are also influenced by factors beyond the company’s control, such as the economic cycle, stock market performance, investor interest in IPOs, and the attractiveness of other exit options,” says Juhana Kallio, Chair of the Board of the Finnish Venture Capital Association and Managing Partner of Intera Partners.

Activity Persists Behind the Scenes While the IPO Window Is Closed

The IPO market in Finland has been exceptionally quiet, and in 2023, only one IPO, the technical listing of Pohjanmaan Arvo Sijoitusosuuskunta on the Nasdaq First North Growth Market in June, has been seen so far.

However, a lot is happening in the field of unlisted, growth-oriented companies as private equity and venture capital investors continue their investment activities and the development of their portfolio companies even in uncertain times. In 2022, Finnish private equity and venture capital investors invested a record-breaking €888 million in a total of 347 companies.

Some of these companies are likely to go public, as private equity and venture capital investors are always temporary owners who develop their portfolio companies during their ownership period and typically exit within 3-7 years. Exit strategies include selling the portfolio company to an industrial buyer or another private equity investor or listing it on the stock exchange, for example. In the past five years, nearly half of the companies listed on the Helsinki Stock Exchange have had private equity backing.

“Due to the challenging market situation, the IPO window has remained closed for an exceptionally long time. Nevertheless, preparations are underway in many companies beneath the surface. It can be assumed that there is growing interest in going public, and the right moment is being closely watched,” says Horttanainen.

“Companies still express an interest in going public, and we are in constant discussions with companies considering an IPO. On Nasdaq’s Nordic markets, we anticipate several listings in the latter part of 2023, and the IPO market is expected to pick up in the coming year. Investors are closely monitoring the success of autumn listings not only in the Nordic countries but also in other markets,” comments Henrik Husman, President of Nasdaq Helsinki.

Read more about the potential IPO candidates here (PDF).

Additional information:

Anne Horttanainen
Finnish Venture Capital Association, Managing Director
anne.horttanainen@fvca.fi
+358 40 510 4907

Henrik Husman
Nasdaq Helsinki, President 
henrik.husman@nasdaq.com
09 6166 7208

Juhana Kallio
Finnish Venture Capital Association, Chair of the Board
juhana.kallio@interapartners.fi
+358 40 526 6629

FVCA is the industry body and public policy advocate for the venture capital and private equity industry in Finland. As the voice of the Finnish VC and PE community and the entrepreneurs they fund, it is our role to demonstrate the positive impact of the industry on the Finnish economy. FVCA – Building growth.

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Listed below, in the left column is a potential IPO candidate, and in the right column is the investor who has identified the IPO candidate. The list has been compiled through a survey sent to FVCA’s private equity and venture capital investor members, and it includes portfolio companies that investors could envision going public within the time window of 2023–2027.