As a listing destination, the Swiss Stock Exchange punches well above its weight. Despite the unprecedented volatility and market disruption, listing activity has continued in Switzerland. In 2020, the Swiss Stock Exchange saw one IPO (initial public offering) and one listing come to market, while it also continues to cement its position as a leading hub for ETF (exchange traded fund) listings.
In pole position for IPOs
Although IPOs were temporarily put on hold during the peak of the pandemic, the market is now in recovery mode. Switzerland, for instance, saw two high profile listings in the first half of the year. Ina Invest – a spin-off from Implenia – listed its shares on the Swiss Stock Exchange in June – adding CHF 215 million (based on the opening share price) to its overall market capitalization. Shortly thereafter, Swiss household appliance company V-ZUG – a spin-off from Metall Zug – went public on the Exchange in a CHF 463 million (based on the opening share price) float.
Leading the way in ETF listings
The Swiss Stock Exchange has been facilitating ETF listings for 20 years, and is widely considered to be an industry leader in this market segment. There are now nearly 1,600 ETFs listed on the Exchange from 27 different providers with new products being added on a regular basis. ETF turnover has grown steadily and has already exceeded the CHF 100 billion yearly threshold several times. In the first six months of 2020, ETF turnover increased by 25.1% year-on-year to CHF 66.7 billion, while the number of trades grew 75.1% to more than 900,000. This rapid expansion illustrates how ETFs continued to trade efficiently and played a leading role in price discovery during this difficult period.
The launch of the ETF Quote on Demand service will also drive up volumes in large ETF trades by providing investors access to an additional order book and multiple liquidity providers via a bidding process with this offering potentially improved executions. Furthermore, the exchange has observed a notable jump in listings of ETFs focused on ESG (environment, social, governance) and anticipates that ESG ETFs will continue to increase in numbers over the next 12- 18 months.
Although 2020 has been a year marred by extreme uncertainty, the Swiss Stock Exchange has navigated the crisis and provided stability and security for its clients throughout.