In the beginning of the year, Adam Kostyál promised to fight for payment giant Klarna to be listed on Nasdaq Stockholm. Having worked as the listing chief for the stock exchange operator for almost twelve years, it was recently announced that he would take the leap to become CEO.
Now, six months have passed since he took office in April, and Klarna has taken clear steps towards a listing – on Wall Street.
“I’m not worried about the Swedish market per se, but of course, I’m a little sad, or perhaps disappointed, that Klarna did not evaluate the Swedish market more thoroughly,” says Adam Kostyál to Placera.
“We hope they consider a parallel listing. There are several investors who would like to invest in them.”
But soon, the online pharmacy Apotea will be listed on the stock exchange, and in addition, there are a large number of companies set to be introduced in the first half of 2025, according to Adam Kostyál.
One thing that stands out to him is that an unusually high number of upcoming listings are strongly entrepreneur-driven companies, with prominent leaders.
“I always find it a bit more exciting when we bring in companies with strong entrepreneurs, who are visible and whom people can relate to and look up to. We have many such companies on the way,” says Adam Kostyál.
“The Threshold Has Been Raised”
However, the CEO of the stock exchange feels that regulations, both local but mainly at the EU level, have made more companies refrain or be hesitant about going public.
“The threshold has been raised.”
As Sweden has many small and medium-sized companies listed, Adam Kostyál believes that the Swedish Nasdaq is at risk of being more affected by the regulations compared to other European exchanges.
“If we want to maintain an active market and attract companies, we must ensure that we do not over-regulate the public market and under-regulate the private market. Therefore, it is important that we are pragmatic and ensure that the regulations create value for the entire ecosystem when deciding how they should be implemented,” he says.
This includes the tightened sustainability reporting CSRD, which is now being implemented as part of Swedish annual reporting law.
“I think we need to look at how we can simplify and clarify for companies so that it becomes manageable for all companies regardless of size.”
“Had Hoped for Greater Risk Appetite”
In the spring, the CEO told Affärsvärlden that he saw a trend with increased interest in smaller and medium-sized companies.
Do you still see that trend?
“We see increased trading among smaller and medium-sized companies. Capital transactions occurring on both corporate bonds and equity with new issuances are done at better levels,” he says.
“But I think we had hoped for more, that the risk appetite would have been greater. So overall, I would say that it has not progressed as quickly as we had hoped. I think many advocated for a faster interest rate setting than what we have seen. Personally, I had hoped that interest rates would have gone down a bit faster.”
“Wants Swedish Entrepreneurs to Understand”
But Adam Kostyál, perhaps unsurprisingly as the CEO, believes that the Stockholm stock exchange and the Swedish market stand out positively.
He has just participated in the exchange’s own conference on the capital market. During that, he spoke with executives from American investment banks Jefferies and Morgan Stanley about “how unique the Swedish market is.”
“I think Swedish entrepreneurs should try to understand how deep this market is. For example, I am convinced that Klarna would have received the same valuation here as in the USA, where it is also significantly more expensive to be a listed company,” he says.
“Then, I wish that more people would become better at marketing Sweden, so that it’s not just us at the stock exchange who do it.”
Nasdaq Scandal
Adam Kostyál’s relatively short time in the CEO role has been marked by the raid conducted at Nasdaq’s facilities in Frihamnen in Stockholm last fall.
The raid resulted in a criminal investigation and a fine of 100 million SEK from the Financial Supervisory Authority for clear deficiencies in Nasdaq’s trade surveillance.
The investigation has progressed to the point where the final notification was sent out to the suspects earlier this week.
There are four individuals suspected of serious insider trading, one of whom was employed in Nasdaq’s market surveillance. The prosecutor plans to bring charges at the beginning of next year.
Due to the ongoing investigation, Adam Kostyál does not want to say much.
“He is no longer employed with us, but of course, it has been a difficult issue for us as a company and for our employees.”