As a small country Iceland does not breed the small country mentality – quite opposite happens here as we see now. With the smart navigation in selecting partnerships Icelandic businesses are quickly bouncing back. Recent IPOs on the NASDAQ OMX Iceland have shown consistent and very impressive results which are very much in line with the ones at larger, older and bolder exchanges. Such as 153.3% stock price growth within 20 months from the first trading day for Hagar (Largest Food & Fashion retailer in Iceland). Tryggingamiðstöðin (Icelandic insurance company) showed 48% within the first 3.5 months of trading with the first trading date being May 8, 2013. Reginn hf. (facilities management company that invests in, leases out and operates commercial property in Iceland) showed 62.3% stock growth within 19 months of trading.
The First North Division of NASDAQ OMX Nordic, with Iceland as part of it, is showing very intriguing results with small cap companies who are allowed to list with the 3.5 mln USD median revenue and average revenue being 12.9 mln USD at listing in 2012. Digging deeper the NASDAQ OMX Iceland information we have found that 56% of firms had assets under 7,6 mln USD when they listed and even more – 24% of firms had assets under 2,3 mln USD when they listed.
Pall Hardarson, President Icelandic Markets, Nasdaq OMX Iceland shares his views with PickingAlpha about Icelandic business community and options for small cap companies to do IPOs and expand their businesses in a way that for many years was a privilege to very large companies and in the mentality of many business owners Initial Public Offering is the option for gigantic companies only.
Note (source: Nasdaq OMX Nordic web-site): NASDAQ OMX First North is an alternative market, operated by the different exchanges within NASDAQ OMX. It does not have the legal status as an EU-regulated market.
Companies at First North are subject to the rules of First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.