The IPO window is open – How to identify the right time for listing?

Despite the favourable market, companies remain cautious in making the decision to go public. The strategic benefits achievable through listing, such as new capital for supporting growth, improved access to capital, strengthening market position and visibility, as well as the option to effectively utilise share-based incentive schemes, are central for many companies in achieving growth.

At the moment, the main concern does not appear to be whether to list, but rather when to do so. In this blog, we examine three key factors for successful IPO timing: market conditions, industry-specific characteristics, and the internal capabilities of a company.

Stock markets and macroeconomics as drivers behind the opening IPO window

Developments in recent years have shown that listing activity is highly dependent on macroeconomic trends and the state of the stock market, both in Finland and globally. Geopolitical risks in particular have increased market volatility, which has been reflected in stock price fluctuations and uncertain economic outlooks. Consequently, the valuation levels of listed companies remained low for an extended period, especially in Finland, and fluctuated greatly. This reduced the attractiveness of listing and made it difficult to sell and price shares.

Although stock market fluctuations and geopolitical events are among the most difficult factors to predict in terms of IPO timing, it is a good idea to rely on strong signals of investor demand when determining the optimal timing. Key indicators include the subscription volumes, trading volumes and pricing of recent listings, price behaviour of listed shares post-listing, as well as the quality and geographical distribution of investors.

The IPO window may open quickly when market conditions shift to a more favourable direction. A small number of successful listings can be enough to encourage several listing candidates to proceed with their plans simultaneously.

As the so-called bull market accelerates, investors may even begin to view IPOs as a sure-fire way to make a quick profit. This phenomenon was last witnessed in 2021, when one IPO after another was oversubscribed as subscription rates accelerated. In Finland, conditions for IPOs began to improve at the beginning of this year, resulting in two new IPOs in spring 2025.

The window for IPOs opened properly in autumn 2025 following Trump’s ‘Liberation Day’, and as of now there are good grounds to assume that the conditions for IPOs will remain favourable also in 2026. There are, at least for the time being, no significant known political events that are likely to cause market volatility before the US midterm elections in November 2026.

Regardless of market conditions, it is advisable for a company planning a listing to begin preparations well in advance, at least 1–2 years before the intended listing date. The IPO market is dynamic and its outlook is constantly changing due to factors such as the global political climate and changes in interest rates. A suitable opportunity to go public may therefore arise at short notice. Companies that can quickly advance their well-prepared listing process are best positioned to capitalise on a favourable market turnaround.

Industry: trendiness or fundamentals?

When considering the timing of its listing, a company should assess both its industry’s sensitivity to economic fluctuations as well as the current phase of the economic cycle. In addition, it is advisable to evaluate the industry’s current attractiveness as an investment target, i.e. the effects of prevailing trends on demand and valuation.

Internationally, investors have recently favoured growth-stage companies, particularly in the defence technology, fintech and health technology sectors. In these industries, the innovativeness, scalability and prospects of the business model are decisive. Companies that take advantage of current industry trends, such as artificial intelligence, have emerged as leaders.

Potential issuers should also pay attention to the issuance calendar, i.e. market congestion in relation to investor liquidity. It is relevant to consider whether other companies in the same industry are going public at the same time, as this could lead to oversupply in relation to investor demand. It might also be more difficult to secure the top advisors when the market is hot.

Certain industries emerge as more popular than others at different times. Despite this, over the past year Finland has seen successful IPOs from companies in fairly traditional industries. Economic uncertainty and stock market fluctuations highlight the importance of strong fundaments. In challenging market conditions, investors tend to place even greater emphasis on demonstrated business profitability and predictable turnover rather than speculative narratives. Additionally, large-scale investments by AI companies have driven some investors to more traditional and stable companies that offer high dividend yields.

Credible equity story is built on internal readiness

In addition to market conditions and industry-specific factors, the opportune moment for an IPO largely depends on the company’s internal readiness not only for the IPO itself but also for life as a listed company. Even in an attractive listing market, the company should first consider some key aspects.

Operating as a listed company requires the company to be able to meet regulatory corporate governance and risk management process requirements. It is essential to ensure that the board of directors and management team possess the right combination of experience and skills to manage a listed company and maintain investor relations. In addition, the company must ensure that the organisation and resources of its financial administration and accounting functions are appropriate for a publicly listed company.

A company to be listed on the main list of the Helsinki Stock Exchange must prepare its financial statements in accordance with the International Financial Reporting Standards (IFRS), while a company to be listed on First North Finland may follow the lighter national FAS accounting standards. The requirements of a listed company generally benefit the company’s processes, but in the case of smaller or early-stage companies, they may constitute an unnecessary expense in relation to the scale of operations.

A crucial part of the listing process itself is to create an interesting and credible equity story that emphasises the company’s development and full potential. Investors expect the company to have a clear strategy and a good track record of implementing it. Investment bankers play a key role in building the equity story, as it must be aligned with the company’s financial figures.

Relevant benchmarks for success include, for example:

• a distinctive business model,
• the size of the potential market,
• a well-considered and focused strategy,
• a credible description of the company’s prospects,
• a logical and clear description of the use of funds potentially raised in the IPO and of the dividend policy
• a committed management team that is prepared to run a listed company,
• a favourable ESG profile,
• attractive prospects in a growing industry, and
• a strong cash flow.

A company that articulates its goals in a clear and credible manner and exceeds the industry average with respect to these benchmarks is in a stronger position to attract potential investors. If a company is still struggling to find its direction, a premature listing and the negative price development that often follows will leave the company’s management with less room to manoeuvre and restrict business development.

Listing offers an excellent opportunity to increase company recognition. A company should therefore start to build media visibility from a perspective that supports its business well before commencing formal listing preparations. The marketing campaign for the listing itself should be designed to capture the attention of private investors in particular. The Financial Supervisory Authority no longer requires companies to submit marketing materials for advance review, which may simplify campaign planning.

Another thing to note is that a company looking to be listed needs to bring its financial reporting and disclosure practices up to the standard required of listed companies. Transparent and regular disclosures can result in previously undisclosed shortcomings coming to light.

Therefore, a company considering listing must be prepared for a thorough public scrutiny of its operations, devote resources to identifying reputation risks and risks related to the company’s operations and mitigate such risks where possible, and be adequately prepared for challenging communication scenarios.

Listing decision – start preparing today

As discussed above, determining the right time for a listing is rarely straightforward. Ultimately, it is a matter of deciding to take action on matters that will enable the listing. While listing is not the right strategic decision for all companies at all stages, in recent years we have seen numerous examples of successful listings where growth-oriented companies, regardless of their industry or length of operating history, initiated a new phase of strategy implementation and ownership base development through listing.

The best-timed IPOs combine market conditions with strong internal readiness and positioning. A successful IPO is built long before the stock exchange bell rings – it is rarely too early to begin familiarising oneself with the matter and considering the requirements for listing.

Aiming for a listing is often beneficial, even if it does not ultimately materialise. In a listing process, the company’s operations are critically examined by several independent advisors, which is bound to help the company develop.