Digital IPO yields successful tech launch in a record-breaking quarter

ABGSC strengthens its market leading position further. We’ve had our strongest set of Q2 revenues since 2007” Jonas Ström, Group CEO says. ABGSC has helped Norwegian tech companies make strong debuts on the stock exchange despite COVID-19 hampering traditional IPO processes. “ABGSC invented the digital IPO process contributing to the successful launch of several Norwegian tech companies during Q2” Peter Straume, Head of Norwegian operations at ABGSC says.
The process of taking a company public typically involves a lot of travelling and meeting activity. Senior management and equity analysts go on roadshows to draw in as many investors as possible through a series of pitch meetings.
When Pexip, a Norwegian video-conferencing company, went public this spring, far-flung conference rooms were replaced by online meetings due to the COVID-19 pandemic. Aided by ABG Sundal Collier, the company underwent a completely digital IPO process – with astonishing success.
During its first day on the Oslo Stock Exchange, Pexip’s stock value shot up nearly fifty per cent. The Financial Times described it as potentially “the largest software IPO in Scandinavia”.
Peter Straume, believes the digital approach has yielded unforeseen benefits.
“Far from being an impediment, the digital format turned out to be hugely advantageous. We ended up with more time to meet potential investors, and the whole process has been far more efficient than our typical IPO roadshows,” Straume says.
Pexip experienced significant growth in the months prior to its IPO, reporting a seven-fold increase in usage since the beginning of the year.
“Saves time, money and the environment”
Yet, the IPO surpassed all expectations. “The response was overwhelming. All of our one-on-one online meetings resulted in investments”, Odd Sverre Østlie, CEO of Pexip, says.
Peter Straume at ABGSC explains how the process itself was more efficient and streamlined than anticipated: “For the Pexip IPO we did everything digitally, and we will continue to do so for other projects. We’ve never achieved such a reach toward international customers with this level of efficiency when marketing a company.”
Reduced travelling expenses alone saved ABGSC over a million NOK over the course of just a few weeks. Pexip reports having saved seventy working days as a result of making the whole process digital. “Going forward, we will do more of our work digitally. It saves time, money and the environment,” Peter Straume says.
“Market stronger than ever”
Pexip is at the forefront of a recent surge of tech stocks on the Oslo Stock Exchange. Even though the sector experienced a severe drop in the first quarter, it seems to have recovered more rapidly than the rest of the market and is now in a stronger position than ever.
“For us, it’s full speed ahead, and the market is stronger than ever. We’re running many transactions these days, and I can’t recall ever being in a stronger position – both in terms of investor interest and real capital available,” Peter Straume says.
ABGSC recently released its second quarterly report of the year, revealing that the company has thrived, even in the face of a global pandemic.
“We’ve had our strongest set of Q2 revenues since 2007, NOK 408 million, which is 18 per cent higher than last year. This is a massive achievement, as we rarely have faced more uncertainty than we’ve seen this quarter,” Jonas Strøm says.
He credits the employees for enabling the company to thrive under difficult circumstances.
“I am very proud of how our staff have adapted to the challenging environment we have encountered. We managed to cope with new working conditions while simultaneously changing the focus from processes being put on hold to new situations arising.”
Always in demand
In addition to a strong tech performance – ABGSC has made great strides in the real estate sector. “I am very pleased about the progress we have made as a broad service provider to companies and investors active in the real estate segment. In recent years, we have been involved in more Nordic real estate IPOs and private placements than any other investment bank, and we have a leading position within Nordic real estate high yield debt. During the last quarter, we cemented our position as the undisputed top broker of Nordic listed real estate. This is supported by the broadest research coverage universe and our top-ranked analysts.” All in all, he believes that the COVID-19 crisis has helped underscore the value of the financial services industry. “The recent period proves that high-quality financial advisory services are always in demand and of great value to clients. We have advised companies manoeuvring in troubled waters and provided capital for clients looking to capture the opportunities arising from changing conditions,” Jonas Strøm concludes.