Blue Lagoon goes public – magma build-up under Svartsengi listed in prospectus as “untapped growth potential”

The Blue Lagoon began its share offering this week, and the prospectus stands out for its bold presentation of the geology of the Reykjanes peninsula. Land uplift at Svartsengi is shown on a chart headed “Steady growth”, with no mention anywhere that the line is measured in centimetres.

“We don't see eruptions as a risk but as natural inventory build-up,” says a spokesperson for the company. “Few companies can boast that the ground beneath them is actively expanding.”

The prospectus also includes a section on dividend policy, stating that the company intends to pay shareholders in lava if operations are halted. The lava will be delivered on site and still hot.

Analysts have calculated that the company is worth far more than the offer price. One of them, who does not want to be named, says he used standard models but left out the column for natural hazards. “It skewed all the results,” he explains.

Gunnar, a 41-year-old share collector from Garðabær, bought immediately. “I thought to myself: how often do you get to own a piece of something that has closed six times because of eruptions and is still standing?” he says. “That's resilience. And hot water.”

Pension funds have shown interest in the offering. A spokesperson for one says the fund carefully went through the Met Office's hazard map and decided to treat it as a market map.

The offering closes on Friday. Shares will be delivered electronically or, should circumstances change suddenly, by helicopter.