The price comparison company Prisjakt, with the venture capital firm eEquity as one of its main owners, was listed on the Nasdaq First North Premier Growth Market on October 23rd. The subscription price was set at 31 Swedish krona per share, giving the company an initial valuation of 675 million Swedish krona.
Since trading began, the share price has remained just below the introductory price. When the stock exchange closed on Monday, November 2nd, the price was recorded at 30.60 krona, corresponding to a market capitalization of 666 million krona.
Last night, statistics were published showing that support purchases have been made in the share on all trading days since its debut. Breakit reports with reference to information from Dagens industri.
Accounts for 21 percent of turnover
It is the bank SEB, in its role as financial advisor and stabilization manager in the listing, that has carried out the transactions in order to counteract price declines during initial trading.
In total, SEB has acquired approximately 834,000 shares in Prisjakt since October 23rd. This means that the stabilization purchases have accounted for 21 percent, or just over one-fifth, of the total turnover in the share during the period.
According to applicable regulations, stabilization measures may be carried out for a maximum of 30 days from the first trading day, and the transactions must never take place at a price exceeding the subscription price of 31 krona.
Similar process in Ellos Group
Advisory banks carrying out stabilization measures in connection with stock market introductions is an established procedure on the stock market. Earlier this summer, e-commerce group Ellos Group underwent a similar process after its listing.
In that case, Danske Bank acted as stabilization manager and carried out repeated support purchases during a large part of the trading days after the premiere. When the stabilization period ended, the bank had purchased shares for a total of 44 million krona before the Ellos share was left to trade entirely on its own on the market.