Danish medical pot IPO nearly quadruples on Day 1
COPENHAGEN Danish cannabis firm StenoCare sparked a stock market stampede on Friday as investors rushed to buy into its shares on their debut, driven by enthusiasm for the therapeutic benefits of its products.
StenoCare’s stock nearly quadrupled in price to hit a high of 33.50 Danish crowns ($6.70) in early trading. They had been priced at 8.80 crowns ($1.76) in their initial public offering.
Interest from investors in the stock had been overwhelming, chief executive Thomas Skovlund Schnegelsberg said. “From our communication with investors, we get a sense that many might have followed their heart rather than their wallet.”
The European market for medicinal cannabis, forecast to grow from around 100 million euros ($150 million) this year to at least 450 million euros in 2022, is benefiting from looser legislation in countries like Germany, Britain, Italy and Denmark.
For now, recreational use of the substance remains prohibited in most of Europe.
Denmark legalized the medicinal use of cannabis on Jan. 1 and is also one of the few European nations to legalize local production.
Anita Ambjorn, 75, who suffers from a muscle disease and has been using cannabis oil drops since March this year, attempted to buy shares in the IPO.
“I have never invested in the stock market before, but I was willing to support this case with a small saving of 5,000 crowns. Unfortunately I didn’t manage to get any shares this time around,” Ambjorn said.
Ambjorn had just returned home from the pharmacy, where she spent 2,700 crowns to buy enough cannabis oil drops to last her a month and a half. The prescription cost her an additional 1,000 crowns.
“The price is horrendously high,” Ambjorn said. “But it’s worth it. I used to stuff myself with morphine, but this has given me a new and better life.”