Finnish quantum computing company IQM raised $82.4 million through its initial public offering on Nasdaq last week, becoming Europe's first publicly traded quantum firm.

Shares priced at $12 each and closed the first trading day at $12.78, giving the company a market capitalization of approximately $1.4 billion. The IPO valued IQM at roughly 20 times its 2024 revenue of around $70 million.

"It's a very good debut for the company," said Kai Lappalainen, managing partner at investor ND Capital, which backed IQM through multiple funding rounds.

IQM develops quantum processing units and full-stack quantum computing systems for research institutions and enterprises. The company's technology focuses on superconducting quantum processors that operate at extremely low temperatures.

The Finnish company previously raised funding through a special purpose acquisition company (SPAC) structure before switching to a traditional IPO. As part of the SPAC process, investors including CCAP invested IQM tokens, with the company later converting these investments into shares at a valuation of $8.1 billion.

The Nasdaq listing follows strong revenue growth for IQM. The company generated approximately $70 million in revenue last year, up from around $45 million in 2023. Most revenue comes from quantum hardware sales and consulting services.

"The company represents a strong technological advantage in what will eventually become the next-generation computing market," Lappalainen said. "This gives them what's essentially the foundation for a sustainable competitive advantage."

Quantum computing remains an emerging field with significant technical challenges. Companies like IBM and Google have made progress with quantum systems, but commercial applications remain limited.

IQM plans to use the IPO proceeds to expand manufacturing capacity and accelerate product development. The company aims to scale production of its quantum processors and develop new applications for enterprise customers.

Market positioning

The public listing comes as quantum computing attracts increased investor attention despite technical hurdles. US-based quantum companies like Rigetti Computing and IonQ have struggled with volatile stock performance since going public.

IQM's revenue multiple of roughly 20 times compares to software companies trading at similar multiples, though quantum hardware typically requires significant ongoing research investment.

The company expects to reach profitability by 2027 as quantum computing applications mature and enterprise adoption increases.