Latvia's first capital market activity barometer has been created

Latvia’s leading investment bank Signet Bank in cooperation with the national information agency LETA has developed the Latvian Capital Market Activity Barometer (hereinafter – the Barometer). It is the first analytical tool of its kind in Latvia that systematically collects and presents quantitative and qualitative data on the dynamics of capital market development and the role of participants – investors, entrepreneurs, media – covering the period from 2018 to 2024.

For the first time, three key indicators of capital market activity – investor activity, market size and media intensity – are brought together and analyzed in one place. This provides a multi-layered insight into market development, obstacles and future growth potential. The Barometer will be updated annually, providing a comparative perspective of the pace and direction of Latvian capital market growth.

Roberts Idelsons, Chairman of the Board of Signet Bank, says: “A lot has been achieved in the Latvian capital market so far – the foundations have been strengthened and new opportunities have opened up for both the growth of local companies and investor activity. But long-term development requires continuous progress. Latvia has companies with ambition, investors with interest and the political will to promote market development. But it is important not only to act, but also to measure progress – which is why we have created the Latvian Capital Market Activity Barometer. It provides a data-driven overview of market dynamics, helps to identify challenges and make sustainable decisions that promote growth not only in business but also at the national level. Only what we can measure can be the basis for change.”

Awareness among businesses is growing, but action is still slow

The latest survey[i] shows that 51% of respondents, local entrepreneurs, have heard of capital market opportunities, the highest level of awareness ever. This compares to only 29% in 2021 and 43% in 2023. Thus, over the last four years, entrepreneurs’ awareness of the benefits of capital markets has increased by 22%, which shows a positive trend of improving financial literacy. At the same time, 31% of respondents still admit to being uninformed, while 28% choose “difficult to say”, signaling low confidence and caution among entrepreneurs. The main barriers to using the capital market to finance businesses are both emotional and practical: administrative burdens, lack of knowledge and reluctance to go public.

When asked about their plans to use sources of finance, entrepreneurs’ preferences are still dominated by state support mechanisms (Altum, EU programs), while capital market instruments – stock market listings and bond issues – often remain out of sight. Although there has been a gradual increase in awareness, the capital market is still perceived by entrepreneurs as a complex and less accessible source of finance.

Investor activity is growing, but the stock exchange lacks quality issuers

Since 2018, the volume of investments in Nasdaq Riga has increased by 55%[ii] and the number of transactions has more than quadrupled, mainly driven by the growth of small investors.

Although the market supply is still limited, investor confidence and interest continue to grow – especially for companies with good brand recognition, which have already publicly demonstrated transparency and growth ambitions, such as Virši, DelfinGroup, Grenardi Group, CleanR Group, Eleving Group, etc.

Valters Smiltāns, Investment Analyst at Signet Bank, says: “Overall, investor interest in the local capital market is growing at a healthy pace, but there are currently limited options. At the same time, there is a clear signal that the listing of large and high-quality companies could significantly activate institutional investors and make the offer more attractive to retail investors. This would contribute to an overall increase in local capital market activity. Therefore, the involvement of both the state and the financial sector will be essential in the coming years to turn confidence into action.”

Media coverage signals a maturing of public opinion

A media monitoring study[iii] conducted by the national information agency LETA shows that in 2024, capital market topics will be mentioned in 12 427 publications in the Latvian media, reaching a potential audience of 370 million. Compared to 2021, the number of mentions increased by more than 70%, with bonds, IPOs and stock market listings being the most frequently mentioned topics. This indicates that the capital market is becoming a more prominent and frequently discussed topic in the media in the context of business and sustainable economic development.

While the information background is active, the practical contribution is often delayed – news, interviews and commentary dominate the media space, while specific transactions or new issuers are covered less frequently. For example, in the first months of 2024, the growth in media activity coincided with the IPO preparations of airBaltic, the Eco Baltia bond issue, as well as other news about potential market players. This shows that there is interest and the media is reacting to potential capital market activity, but the content still lacks in-depth analysis and feedback on real results.

Ivars Svilāns, Head of Data Services Development at LETA, says: “Despite more than 12 000 mentions of capital market-related topics, their content remains mostly informative rather than experience-based. This suggests that public perception of the capital market is still developing – interest is growing, but consistent, positive action is slower to follow. The same happens in other areas – people talk at first, topics slowly “heat up” and then action follows at some point.”

Developing capital markets means changing habits – from short-term to long-term thinking, from caution to strategic action The Capital Market Activity Barometer is the first step in this direction – a tool that allows us to look at the market systematically and base decisions on real data. But it is not measurement that changes markets, it is people. Latvia has investors with interest, companies with ambition and the political will to drive change. All that is left is to act. The only question is whether we will be able to use all the available opportunities in a timely and meaningful way.

Signet Bank Latvian Capital Market Activity Barometer: https://kapitalatirgus.lv/

[i] The data was obtained from the “Latvian Entrepreneurs’ Financial Sentiment Survey” conducted by the media agency Mindshare Latvia on behalf of Signet Bank in April 2025. 503 business owners, managers and CFOs took part in the survey, providing their assessment of the situation and development prospects for the period 2024-2025.

[ii] Signet Bank Latvian Capital Market Activity Barometer, 2025. Data source: Nasdaq Riga; analysis period: 2018-2024.

[iii] LETA Analytics in cooperation with Signet Bank, Capital Market Activity Barometer, 2025. Data source: STATION media monitoring; analysis period: 2018-2024.

About Signet Bank

Signet Bank is Latvia’s leading investment bank, founded in 1991 and one of the first banks in independent Latvia. Signet Bank offers sustainable financing and investment solutions to local entrepreneurs and businesses. Since 2021, Signet Bank has raised additional funding of EUR 1 billion for more than 50 Latvian companies through bond and equity issues. In 2024, funds under management reached EUR 1.6 billion. Signet Bank is the leading arranger of corporate bond and equity issues in Latvia and one of the leading stockbrokers in the Baltics. Signet Bank’s shareholders are eighteen Latvian and international private investors, the largest of which are Signet Acquisition III (23%), whose sole shareholder is US investor Aleksandrs Solovejs, AS “RIT Group” (18%) – a Latvian company owned by the Rapoport family, and SIA “Reglink” (15%), founded by banking professional Irīna Pīgozne.