Share liquidity - a make or break factor?
Why liquidity matters more than ever for Nordic small and mid-caps
In today’s turbulent market, liquidity has become one of the most critical factors for small and mid-cap companies across the Nordic region. While strong fundamentals, innovation, and growth stories remain essential, they are no longer enough to attract capital. Investors are increasingly focused on one simple question:
Is the share liquid enough so that I can buy it (and eventually sell it, too)?
For many Nordic listed companies, especially outside the large-cap space, the answer is often no. And that lack of liquidity can have far-reaching consequences for valuation, investor engagement, and access to growth capital.
How you Can Improve Liquidity? Tough question!
While macroeconomic forces are beyond any single company’s control, investor relations professionals play a vital role in shaping liquidity outcomes.
Here are three actionable steps you can take today:
Broaden your investor base
Actively engage with quality investors who will trade your shares over time.
Look beyond your home market – digitalized things help you a lot.
Strengthen transparency and your equity story
Deliver clear, consistent, and timely disclosures to build investor trust.
Craft a compelling narrative about your growth strategy that resonates with both local and international investors.
Highlight your stock’s liquidity metrics in investor communications – awareness drives action.
Engage with new solutions
Particularly FInnish companies, considering new, innovative tools are now longer optional.
Liquidity as a strategic asset
As capital markets evolve, liquidity is becoming a strategic asset in its own right. It directly impacts your company’s ability to raise funds, attract investors, and maintain a healthy valuation.
For Nordic small and mid-cap companies, this is not just a financial metric – it’s a question of long-term competitiveness.
Companies that make liquidity a core part of their IR strategy today will be better positioned to navigate future challenges, while those that ignore it risk being permanently sidelined by larger, more liquid peers.
Thoughts
Liquidity has always been important, but in 2025, it’s a make-or-break factor for small and mid-caps across the Nordics.
The good news? Investor relations teams have powerful levers they can pull to improve liquidity. By broadening your investor base, strengthening transparency, and exploring market-structure solutions, you can turn liquidity into a competitive advantage — and unlock value for shareholders in the process.