Iceland review - 2014, Page 110

108 ICELAND REVIEW
Growing Economy – Growing Market
The stock exchange lists 18 companies,
three of which are part of First North,
an alternative growth market on NASdAQ
OMX Nordic designed for small businesses.
Among the NASdAQ OMX Iceland listings are
Icelandair Group, Marel (a leading global pro-
vider of advanced equipment and systems for the
food processing industry), HB Grandi (fisheries),
Eimskip (an Icelandic shipping company), Reginn
(real estate) and Vodafone Iceland (telecommu-
nications). Looking to the future, the exchange
hopes to include listings of well-established
Icelandic brands, such as Advania (IT), Promens
(plastics manufacturer), Reitir and Eik (both in real
estate) and financial institutions such as Arion
Bank, Landsbankinn and Íslandsbanki.
rebuilding tHe eConomy
According to Páll Harðarson, president of
NASdAQ OMX Iceland, the exchange’s primary
goal of rebuilding the country’s equity market has
been going quite well. With increased equity list-
ings and more on the horizon, trading has grown
at a healthy pace. In the past 18 months, five new
companies have listed on the exchange. “The
companies which are listing reflect the changing
economy. They are more diversified than before,”
Páll says. By taking a stake in the Icelandic mar-
ket, he continues, investors confirm that they
believe in the broader project: the rebuilding of
the Icelandic economy from the ground up. And
the economy seems to be on the up. Economic
growth last year was 3.3 percent and the Central
Bank is projecting a further 3.7 percent increase
in activity this year.
Although trading on a daily basis is more driven
examples of creative and unique Icelandic busi-
nesses which could expand investment alterna-
tives on the Icelandic market.
As the Icelandic market expands, small and
mid-size companies could be the biggest benefi-
ciaries. The First North Iceland market can serve
as a stepping stone for many smaller companies
that have good growth potential and need to
finance themselves to realize their future goals.
First North is a market specifically designed for
growth companies and offers them a simpler way
of listing than the Main Market.
SuPPorting new buSineSSeS
NASdAQ OMX Iceland is also eager to support
new businesses in Iceland, even before they are
ready to list. “First and foremost, the market is
a financing venue for business,” Páll says. “The
basic role of the exchange is to help companies
grow.” Even if a company won’t join the market
for several years, he explains, being able to show
that listing is part of the development plan can
make it easier to attract early investors. And
NASdAQ OMX has further demonstrated its com-
mitment to nurturing up-and-coming businesses
by being a major sponsor of initiatives such as
the Startup Iceland entrepreneurial conference.
“As an exchange, it is very exciting to be able to
help companies raise funds and be a part of their
success stories, says Kristín.
As Iceland’s economic growth is promising Pall
sees the exchange’s role in the revitalization pro-
cess obvious. “We can offer companies a chance
to finance themselves on their own accord, and
even grow to become big corporations. That
must count for something in the growth story.”
by local investors, foreign investors have been
showing a renewed interest in the Icelandic stock
exchange and currently account for about a fifth
of the equity market. In part, this interest may
be driven by Iceland’s unique position on the
world market: the exchange is part of a larger
trading group (NASdAQ OMX) and has a similar
legal and trading infrastructure to that in Europe.
However, Iceland’s economic recovery illustrates
that its prospects are not entirely dependent on
growth in Europe. “From an investment perspec-
tive, Iceland offers something different,” Páll
says. “Both in terms of the companies we have
listed and the economy as a whole.”
Companies such as Hagar, a retailer which
owns 58 businesses including the Bónus and
Hagkaup grocery chains, and insurance provid-
ers Sjóvá, VÍS and TM, offer long-term stabil-
ity and regular dividend payments for investors.
Meanwhile, institutions such as Icelandair Group
have grown as travel for tourism and professional
conferences has been on the rise.
iCeland'S innovation SeCtor
These days NASdAQ OMX Iceland is particularly
interested in working with what communications
manager Kristín Jóhannsdóttir calls Iceland’s
innovation sector: companies which span a wide
variety of fields, but are all “doing something
new and fresh,” while demonstrating substantial
growth potential in the international market. She
points to such companies as InfoMentor, a leader
in the operation and development of informa-
tion systems for schools and municipalities and
Marorka, a leading provider of energy manage-
ment technology for the shipping industry, as
First established in 1985, the Icelandic Stock Exchange is today part of NASDAQ OMX,
the world’s largest exchange company.