European Exchanges Compete for Scarce IPOs as Verisure Heads to Stockholm

As Europe's IPO market continues to underperform relative to global peers, regional exchanges are intensifying competition to attract rare, high-profile listings. The selection of Stockholm as the destination for the upcoming IPO of Verisure, a security services provider backed by Hellman & Friedman, underscores this dynamic. With an estimated valuation of €20 billion (approx. $22.8 billion USD), the listing is expected to become one of the largest in recent European history. Verisure’s decision to list in Sweden reflects more than geographic convenience. The company's long-standing operational roots in the country and the robustness of the local institutional investor base played a decisive role. Stockholm's win over London $^FTSE, Amsterdam $^AEX , and Zurich (SMI) is emblematic of a broader shift in European capital markets, where domestic ties and investor familiarity can outweigh traditional financial center prestige.

Visma IPO May Be the Next Battleground

Another IPO is already drawing attention from the same contenders. According to sources familiar with the matter, Visma, a Nordic software firm valued at tens of billions of euros, is considering a public offering in 2025. Amsterdam and London are once again emerging as top candidates. Visma, backed by HgCapital and other private equity firms, operates in a sector aligned with public market appetite — enterprise SaaS with recurring revenues and defensible margins. While formal mandates have yet to be announced, the strategic positioning of exchanges and regulatory friendliness will be decisive factors in Visma's decision.

Fragmentation Hampers IPO Recovery

Europe’s fragmented capital markets remain a structural barrier to revitalizing its IPO pipeline. Despite efforts by the European Commission to foster a unified capital markets union, national regulations, differing listing standards, and investor preferences continue to divide the ecosystem.

This fragmentation exacerbates challenges already posed by:

1. Undervalued equity valuations relative to U.S. counterparts;

2. Reduced risk appetite among institutional investors post-2022;

3. Regulatory burdens and compliance complexity across jurisdictions;

4. Competition from U.S. and Asian exchanges, which offer deeper liquidity and faster execution;

5. Private equity preference for private capital raises or dual-track exits.

As a result, Europe has been slower to rebound from the post-pandemic IPO slump, even as U.S. and Asian exchanges show signs of recovery.

Strategic Listings as Market Signals

The race for flagship listings like Verisure and Visma is about more than transaction fees. Successful high-profile IPOs serve as liquidity catalysts and reputation boosters for host exchanges. They also signal broader confidence in a region’s regulatory framework, corporate governance, and investor ecosystem.

For Stockholm, securing Verisure is a vote of confidence in the Nordic IPO infrastructure. For London and Amsterdam, missing this deal places added pressure to deliver on future IPOs — especially as both seek to reassert their global relevance amid Brexit and shifting EU financial dynamics.