Stockholm has unexpectedly become Europe’s busiest hub for initial public offerings (IPOs) in 2025, raising $6.8 billion so far this year.

The Swedish capital has surpassed traditional centres like London, with small and mid-sized companies finding fertile ground to list in a market that is only a third the size of London’s.

Next week, security firm Verisure is set to stage Europe’s largest listing since 2022, further cementing Stockholm’s position.

With nine companies already public this year, the city has become the continent’s most active listing venue, powered by a distinctive culture of retail equity participation and accessible tax structures.

Sweden becomes Europe’s leading IPO hub

Stockholm now ranks fifth globally for IPO activity, behind only the US, China, Hong Kong, and India.

The Swedish market has raised more than any other European exchange this year, reflecting both investor appetite and a steady economic recovery.

Verisure’s planned €3.1 billion ($3.6 billion) raise will account for more than half of Stockholm’s total deal volume in 2025.

The offering follows Noba Bank Group AB’s listing earlier this year, which raised 7.6 billion Swedish kronor ($808 million) and surged 30% on debut.

Even with renewed activity in other parts of Europe, Sweden is ahead by a wide margin. The nine IPOs completed so far represent the most since 2022.

Sweden’s ability to attract smaller growth companies rather than global giants is giving it a clear edge at a time when other exchanges are struggling to convince firms to list.

A unique equity culture in Sweden

One of the defining features behind Sweden’s IPO boom is the country’s strong household participation in equities.

According to the European Savings Institute, Swedish households invest over half of their savings in stocks, more than double the euro area average.

Nearly a quarter of Swedes directly own shares in listed companies, with average stakes worth around 540,000 kronor.

This high level of involvement is rooted in policy changes. In 2012, Sweden introduced the InvesteringsSparKonto (ISK), a simplified tax-friendly investment account that enabled seamless stock trading through mobile banking apps.

As a result, households no longer draw a sharp line between saving and investing, making equity ownership a mainstream practice.

This retail base is backed by active local funds, pension managers, and family offices that channel capital into small-cap growth stories.

Together, they provide a deep pool of domestic demand for IPOs, even when international investors remain cautious.

Opportunities and risks for investors

While Stockholm has produced notable success stories this year, not every listing has been profitable.

Investment firm Enity Holding AB has seen shares climb 50% since its June IPO, while game developer Hacksaw AB and private equity group Roko AB have fallen. Qualisys Holding AB, a high-end camera producer, has dropped 25% since going public.

This mix highlights both the opportunities and risks of the market. Analysts point out that Sweden’s IPO boom is largely driven by companies with local focus and strong organic growth, giving them a better chance to succeed domestically before expanding abroad.

Stockholm’s limitations in competing globally

Despite its rise as Europe’s top listing hub, Stockholm lacks the capital depth to host global-scale offerings.

Companies such as Spotify, Klarna, and Oatly have opted to list in the US, where the total market is valued at around $70 trillion compared to Sweden’s $1 trillion.

The Swedish exchange, however, has carved out a niche for nurturing small and mid-sized firms in sectors like financial services, technology, and consumer goods.

The city’s success in 2025 demonstrates that smaller markets with strong local investment cultures can thrive, even as larger centres like London lose ground.

With Verisure’s listing ahead and global IPO activity rebounding, Stockholm’s role in Europe’s equity markets looks set to remain significant in the near term.

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