Iceland Observer: Blue Lagoon Launches IPO, Fjarðarkaup Sale Agreed, and EyrieDC Secures New Investor

MarketVector™ Iceland Global Index (MVISLG) Returns:

1W: 1.65% 1M: (0.78)% 1Y: (4.18)% Inception 12/31/20: 26.80%

Corporate & Market News

Blue Lagoon Launches Public Share Offering

Blue Lagoon opened its public share offering on November 10, ahead of a planned Nasdaq Iceland listing. The company is offering 150 million new shares at ISK 95 ($0.78) per share for retail investors, with the same minimum price for institutional investors. The offering closes November 13, with trading expected to begin November 20. A company-paid analysis by Akkur valued the shares at approximately ISK 133 ($1.09) each.

Íslandsbanki Repurchases $8 Million in Shares

Íslandsbanki accepted offers to repurchase 7.2 million shares at ISK 136.8 ($1.12) per share through a reverse auction. The transaction totaled approximately ISK 985 million ($8 million), with settlement scheduled for November 9. Following the repurchase, the bank held 120.1 million treasury shares, representing 6.85% of issued share capital.

M&A / PE / VC

Samkaup Agrees to Buy Fjarðarkaup

Samkaup, a subsidiary of Drangar, agreed to acquire the Fjarðarkaup supermarket business in Hafnarfjörður from the family that has owned it for more than 50 years. The acquisition is subject to Competition Authority approval. Samkaup plans to continue operating the store under the Fjarðarkaup name.

Kaldalón Acquires Fjarðarkaup Property for $19.6 Million

Kaldalón separately acquired all shares in 1717 ehf., which owns the 4,271-square-metre Fjarðarkaup building and its approximately 17,300-square-metre site. The transaction values the company at ISK 2.4 billion ($19.6 million). Kaldalón also committed to investing another ISK 350 million ($2.9 million) in property improvements.

Blue Lagoon Receives Approval for Arctic Adventures Acquisition

Iceland’s Competition Authority approved Blue Lagoon’s acquisition of Arctic Adventures without conditions on November 2. The companies signed their merger agreement in June, and Blue Lagoon expects to complete the transaction before the end of November. Together, the businesses generated ISK 34.3 billion ($280 million) in revenue in 2025 and employed approximately 1,100 full-time-equivalent workers.

Dell-Linked Investment Fund Takes Stake in EyrieDC

A fund managed by London-based JNE Partners invested in Icelandic data-center developer EyrieDC. JNE Partners was originally established within MSD Capital, the investment firm associated with Michael Dell and his family. EyrieDC is developing a 120 MW data center at Bakki near Húsavík, with total development costs estimated at nearly $1 billion. The investment amount was not disclosed.

Renewable Energy & Industry

Iceland Data-Center Investment Expected to Reach $466 Million

Investment in Icelandic data centers is expected to reach ISK 57 billion ($466 million) in 2026, according to Íslandsbanki Research. The bank estimates that data centers accounted for all growth in Iceland’s export revenues during the first half of the year. Data centers consumed approximately 3.7% of Iceland’s electricity during that period.

EyrieDC Advances $1 Billion Bakki Data-Center Project

Norðurþing’s planning committee recommended conditionally allocating an 8.2-hectare site at Bakki to EyrieDC and authorized 41 exploratory boreholes in November. Final allocation depends on planning approval and agreements covering electricity supply and transmission. The proposed 120 MW facility would be developed in four 30 MW stages, with construction potentially starting in 2027 and initial operations in 2028.

Policy & Central Bank

Inflation Holds at 5.9%

Iceland’s consumer price index rose 0.44% in October, leaving annual inflation unchanged at 5.9%. Diesel prices increased 11.2% during the month, while petrol prices rose 8.0%. The Central Bank’s policy rate remains at 8.0%, with the next monetary policy decision scheduled for November 18.

Economic Indicators

October Goods Deficit Widens to $574 Million

Iceland recorded a preliminary goods trade deficit of ISK 70.3 billion ($574 million) in October. Exports totaled ISK 94.8 billion ($775 million), while imports reached ISK 165.1 billion ($1.35 billion). The deficit was ISK 46.3 billion ($378 million) larger than in October 2025. The rolling 12-month goods deficit reached ISK 513.6 billion ($4.20 billion).

Third-Quarter Unemployment Reaches 5.5%

Statistics Iceland reported an average of 222,100 employed people and 13,000 unemployed people actively seeking work during the third quarter. The unemployment rate averaged 5.5%, while the employment rate stood at 75.5%. Employment fell by 8,400 people from a year earlier, and the employment rate declined 3.8 percentage points. Separate register-based data showed 226,500 people employed in September, approximately 300 more than a year earlier.

September Hotel Stays Rise 3%

Icelandic hotels recorded approximately 561,000 overnight stays in September, up 3% from a year earlier. Foreign visitors accounted for 513,000 nights, or 91% of the total. Hotel overnight stays during the first nine months of 2026 were up just 0.2% from the same period in 2025.

International & Geopolitical

Arctic Investments Conference Draws Record Attendance in London

More than 400 people attended the fifth annual Arctic Investments Conference at the Royal Institution in London on November 5, the largest turnout in the event’s history. Organized by Arion Bank and BBA//Fjeldco, the conference featured executives from Greenlandic renewable-energy developer NunaGreen, HS Orka, Tunnel & Bridge and financial institutions including the Nordic Investment Bank, European Investment Bank Group and La Caisse. Icelandic Prime Minister Kristrún Frostadóttir delivered the closing address.

Greenland Parliament Approves U.S. Security Agreement

Greenland’s parliament approved a new security agreement with Denmark and the United States on November 4 by 16 votes to none, with seven abstentions. The agreement provides a framework for expanded U.S. military activity and additional defense infrastructure in Greenland while reaffirming Greenlandic self-determination. Danish parliamentary consideration is still required before the agreement enters into force.

Greenland Introduces Foreign-Investment Screening Legislation

Greenland introduced proposed foreign-investment screening legislation on November 4, with its first parliamentary reading scheduled for November 10. The legislation would establish a review process for foreign investments involving sensitive industries, ownership stakes and national-security concerns. Parliamentary consideration is expected to continue into 2027.