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The wave of startups went straight to the Merkur stock exchange, but the ones that last came to the party have been thrown on a stock spree, and post-listing performance is in the red for exchange debutants. of this year.
TIGHT START: Play Magnus was listed on Mercury in October. Since then, the share has fallen more than 40 percent.
Jil Yngland
Published:
New companies have flocked to the Oslo Stock Exchange’s Merkur market in 2020, at a rate last seen before the financial crisis.
Several of the new stocks have provided an adventurous return for those who invested before listing.
But after the newcomers were able to trade on the stock market, most days have been red:
- Given that the first trade was made on 37 newcomers on the stock market and as of Wednesday morning, the return was on average minus nine percent, E24’s calculation shows.
- Of the 37 debutants, 25 have given a negative performance after being listed, 11 are in the plus and one unchanged. 16 stocks have fallen more than 20 percent and nine have fallen more than 30 percent.
- What was once the most popular stock has seen its rise drastically reduced. The Quantafuel recycling company jumped from 20 to 73 crowns in September, and has since fallen to just over 40 crowns.
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Actionsmell
The price jump on the first day of trading, a trend seen earlier this year, has also been absent recently. For those who were last to the party, the price has dropped dramatically.
– As soon as there is unrest in the market, it becomes narrow at the door and it becomes very narrow at the door of Merkur companies, investment economist Mads Johannesen at Nordnet tells E24
Danish hydrogen company Everfuel sold new shares at NOK 22 each when it raised NOK 290 million before listing on Thursday morning, but it will trade for just over NOK 19 on the market a few hours later.
Salad company Kalera was priced at NOK 30 per share in capital raising before the IPO on Wednesday. On the same day, the price fell 27 percent.
Icelandic salmon ended just over four percent down when the salmon producer was listed on Tuesday, while solar company Ocean Sun fell 17 percent on the first day. Last Friday’s price drop, IT company Pacientesky, was ten percent.
Mads Johanessen, investment economist at Nordnet.
Nordnet
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– Airy prices
– Merkur is a stock exchange with less liquidity than the main list. It has been seen that if the market gets nervous, liquidity disappears from Mercury companies. Then you have to lower the price to be sold, says Johannesen.
He points out that there are easier admission requirements for those listed on Mercury. Among other things, companies do not need as many shareholders as those on the main list.
– It should also not be underestimated that several have been listed at a fairly airy price relative to earnings. It will be considered a high-risk gamble, Johannesen says.
He also believes that the market may have saturated after a new company has been listed every day for a period.
– There are limits to the opportunity to participate.
According to Johannesen, Nordnet’s clients have not jumped on the latest wave of new action.
– The further you have entered the axis, the more it has diminished with the interest of Nordnet customers. If you see that things are not going very well on the first day, there is also little interest.
High price points
The manager Leif Eriksrød at Alfred Berg believes that many Merkur companies have had a broad price.
– We often prefer companies with profits and a certain track record, which provides a basis for valuing things, he says.
Eriksrød believes that a high price is a major reason stocks are now falling back.
– They have been included at too high levels. Inexperienced investors hear that this is a big threat and do not perform normal valuation assessments.
Read on E24 +
Wave pending issuance on the Mercury Stock Exchange
Party listing
The listing wave has mainly taken place on Merkur Market, a market where admission requirements are lighter than on the main listing on the Oslo Stock Exchange.
The listing party also provides good times for brokers and attorneys who assist companies in the process.
In early October, E24 estimated the value of the fee fee at NOK 870 million for brokers who help raise capital. Lawyers who feared a crisis year are heading for a record year.
The stock market gallop has been met with skepticism by some experts. Chief Investment Officer Robert Næss has likened investors’ risk appetite to the prelude to the dot-com bubble in 2000.
