Norwegian fintech company Huddlestock will begin trading on Euronext Growth/Merkur Market – Oslo Børs today.

Huddlestock Fintech offers two main products, a digital solution for custody banks and a trading connectivity solution for service providers.

The company was established in 2014 and has spent the time since then on developing and commercializing its unique technology. A contract with BNP Paribas was signed in 2019, and the Malaysian company MHX was signed in 2020 and is expected to go live online with Huddlestock´s connectivity solution in January 2021. Huddlestock Fintech is also in final stages of negotiations with German finance website Finanzen.net with the talks set to be concluded in the first quarter of 2021. The company has additional and sizeable clients in the pipeline.

In November 2020, Huddlestock raised NOK 6.3 million from existing shareholders by issuing 3 million new shares at a price of NOK 2.1 per share in a private placement. The placement was oversubscribed. This implied a pre-money valuation of NOK 228 million.

Approximately a total of NOK 60 million has been invested in the company since 2014. The company is fully financed for the planned growth. The Management and Board of Directors owns about 40% of the company’s shares.

“The capital raise gives us a good financial platform for future growth. Being listed on Merkur Market will be a driver for growing the company, as well as an opportunity for investors to take part in the exciting and rapidly growing market,” says Øyvind Hovland, Chair of the Board and co-founder of Huddlestock.

Huddlestock is expected to report revenues of around NOK 3 million in 2020, growing fast in the years to come, as the BNP Paribas partnership starts generating volumes on the platform.

“For the custody technology, the revenues will be directly linked to BNP Paribas’ amount of assets under custody and the volume of transactions on our connectivity solution. The most significant investments in the technology have already been incurred, so profit margins are expected to grow along with our recurring revenue streams,” John E. Skajem, CEO of Huddlestock Fintech, says.

Let’s note that Merkur Market will be renamed Euronext Growth effective November 30, 2020, as part of the transition to Euronext’s trading platform Optiq.