Swedish Startup Space

Here Are Sweden’s Top 11 Tech IPO Candidates

Written by on August 26, 2016
Editors Note: This post is part of a series called Featured posts, presented by Breakit.

Games, music and e-commerce – Here is Breakit’s list of hot Swedish startups which might be looking for an IPO in the near future.

Boozt – According to Breakit’s sources, the e-retailer has engaged Carnegie and Danske Bank advisors prior to an IPO scheduled for next year. Boozt are in a real growth phase. This year, sales will increase by almost 50 percent to around $180 million. Estimated market cap: $180-240 million.

Spotify – There has been speculation of an IPO from the Swedish music service for a number of years, but now it’s for real. According Breakit’s sources, Spotify is planning an IPO in the second half of 2017. But if the stock market is strong, the climate may be right by springtime next year. Estimated market cap: $9-11 billion.

Klarna – Their first step is obtaining a banking license and establishing operations in the US, and then it’s probably time for a public offering. CEO and co-founder Sebastian Siemiatkowski has no great desire to list the company, but the ownership structure includes venture firms who eventually want cash for their investment. It’s unlikely the listing will take place in 2017, but soon thereafter. Estimated market cap: $2.5-3 billion.

Mathem – Online foods sales are an increasingly popular niche and Mathem (Swedish for Food Home) is one Sweden’s largest grocery delivery services. Competitor Mat.se is already on the stock market, and according to our sources, Mathem will soon join them. First though, Mathem needs to prove that they can turn a profit. Our predition is that they will go public in the second half of 2017. Estimated market cap: $120-240 million.

Bygghemma – Owners of this hardware retailer (Swedish for Build At Home) have hired Carnegie Investment Bank to make a blueprint for an IPO. It was speculated that Bygghemma would be listed last spring, but it now seems likely it will happen sometime around the new year. Estimated market cap: $240 million.

FEO Media – The company behind the successful game Quiz Clash is hardly in need of capital from the stock exchange. Last year, FEO Media turned a profit of $8 million, and its pockets are bursting with cash. But the founders have nevertheless indicated that listing is an option, so we would not be surprised if the company is on the market in 2017. Estimated market cap: $120-240 million.

THQ Nordic – The highly profitable gaming company that has developed titles like Darksiders and Titan Quest. In a recent interview, the founder Lars Wingefors (disclaimer: who owns a small stake in Breakit) expressed that preparations are being made for an IPO launch. The estimate is that the plans will become a reality in about six months. Estimated market cap: $120-240 million.

MAG Interactive – This mobile games company is highly profitable. Sales ended last year at $14 million and profit after financial items was $5 million. After the success of Paradox, game developers are hot on the stock market right now. It remains to be seen if the founders will choose to exploit this opportunity. Estimated market cap: $120-240 million.

Royal Design – The Kalmar-based e-commerce company has been in the stock market starting blocks for a long time, but the expected IPO has been postponed until 2017. To make the company attractive enough for investors, Royal Design needs to increase sales. According Breakit’s source, management is focused on growth for the moment. Estimated market cap: $120-240 million.

Ellos – This established mail order giant is currently owned by private equity firm Nordic Capital, which bought the business in 2013 for about $300 million. Ellos is a major player in e-commerce, and Nordic Capital said last summer that they are weighing the IPO option. Estimated market cap: $240-480 million.

Zound Industries – Tommy Jacobson, Chairman of this Swedish headphone manufacturer, stated early this year that the company is considering a listing. Carnegie Investment Bank is acting as advisor in the process, which can be expected to happen in 2017. Estimated market cap: $120-240 million.

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