The Estonian arm of Nasdaq’s Baltic services saw its record for the number of transactions crushed over the last year, leading to an influx of small investors and Estonian companies taking themselves to the public market.
In 2020, the number of transactions on Nasdaq Tallinn’s exchange grew more than fivefold. The number of accounts with at least one stock registered also grew: from 37,000 in 2019 to 45,000 by the end of 2020, said Kaarel Ots, chairman of the Nasdaq Tallinn management board.
He said peoples’ financial literacy has developed and there are more and more small investors.
“I dare say the main reason is that two banks – Swedbank and LHV – gave up transaction fees. We saw how it affected the number of small deals in particular. The development of financial literacy and investment culture is very important, letting people try one stock at a time to see how it goes,” Ots said.
According to the Nasdaq Tallinn CEO, there are more retail investors on the exchange than ever. Demand has been met with sufficient supply and there are more companies on the exchange than ever with the list still growing.
“There was one small company that joined the exchange last year – Saunum Group. Their example is that of many – we have had more meetings with companies planning to go public in the last couple of weeks than last year in total. Saunum showed that a small company that does their job well, is transparent, simple and understandable, can achieve great success,” Ots said.
Read more: ERR.EE