Teller Report

Now you can see non-English news...

Brexit and Trade Conflicts: 2019 was the worst year for IPOs since the financial crisis


TIME ONLINE | News, backgrounds and debates

Frankfurt / Main (AP) - According to a study, the year 2019 was the weakest year for initial public offerings in Germany since the global financial crisis.

Unsettled by Brexit, trade disputes and fears of a recession, only three companies fled an IPO in the tightly regulated Prime Standard segment, a low since the 2009 financial crisis.

At the same time, the value of newly issued shares fell by almost 70 percent to 3.6 billion, according to a study by the Hamburg-based consulting firm Kirchhoff Consult. In 2018, it had counted 16 IPOs with 11.6 billion euros issue volume.

"The economic uncertainties weighed for many stock market candidates harder than the very good performance in the stock market," said company chief Klaus Rainer Kirchhoff. Thus, the Dax since the beginning of the year around 25 percent plus - actually a very good environment. But sharp price fluctuations, the weak share performance of newcomers such as Uber and the canceled IPO of the office provider WeWork would have alarmed investors.

Deutsche Börse's Prime Standard is the segment with the highest transparency requirements for companies. A recording is required to be recorded in Dax indices such as Dax or MDax.

Among the few bright spots in Germany was the IPO of the Swabian software company Teamviewer, with a volume of almost two billion euros, the largest tech IPO since 2000. In the Prime Standard, the Volkswagen truck subsidiary Traton put a billionaire stock market debut. The trend of the fashion retailer Global Fashion Group was much smaller. There was no IPO in Deutsche Börse's Scale segment for start-ups.

But Kirchhoff is more optimistic for the coming year. "The more relaxed monetary policy of the central banks and the increasingly positive signals in the trade dispute, however, give us confidence that by 2020 more companies will go public again."

The pipeline of new candidates is also well filled due to shifts. Potential billion-dollar IPOs included the elevator division of ThyssenKrupp and the energy sector of Siemens, which is set to go down in September 2020. "We expect a clear recovery in the market for IPOs and expect at least ten new issues in the Prime Standard," said Kirchhoff CEO Jens Hecht.

The year 2018 had been the best year since the Tech Boom 2000 on the small German market for IPOs. Heavyweights such as the Siemens Medical Technology Division Healthineers, the Deutsche Bank fundraiser DWS and the brake manufacturer Knorr-Bremse achieved billions in initial listing. Many companies in this country shy away from initial public offerings and prefer to finance themselves through loans.

Source: zeit

You may like

Trends 24h

News/Politics 2020-01-25T08:10:03.856Z


news 2020/01/26    

© Communities 2019 - Privacy