IPO — Comeback for German Companies?
For German companies, IPOs can happen at any time, it’s just that Germany is not an attractive stock market location for many companies for various reasons. Since the events on the ‘Neuer Markt’, the German capital market has generally preferred IPOs of established companies from the traditional medium-sized industries with an enterprise value of more than 200 million. However, these companies are often family-run SMEs that avoid the publicity requirements and public interest generated by an IPO. However, this does not mean that smaller companies cannot also deliver attractive capital market performance. The best example of this is B.R.A.I.N. AG, which has been able to almost double its market capitalization since its stock market debut at the beginning of 2016.
Nevertheless, the stock exchanges in the U.S. offer a more attractive platform for fast-growing German technology companies than, for example, Deutsche Börse due to the larger investor universe. The same applies to Euronext with its stock exchange locations in Amsterdam, Brussels and especially Paris for companies in the healthcare and biotechnology sectors.
Paris as a stock exchange location has enjoyed great popularity in recent years. In the course of the last three years, 65 companies found their way to Euronext Paris — in comparison, during the same period there were only 32 companies in Germany. Almost 40% of the companies that dared to go public in Paris came from the healthcare / biotech sector, followed by 14 companies from the IT sector. This is due in particular to the affinity of the investor public represented in Paris for small- and mid-cap companies — thanks to the joint Euronext stock exchange, investors from the Benelux countries and France, but also from Great Britain, can be addressed.
For the time being, London is certainly an attractive location for an IPO, as it is not yet possible to form a final opinion on this, in particular due to the fact that there are still no details on the actual form of the Brexit. However, since the Brexit vote at the end of June 2016, 23 companies have ventured or announced their intention to join the London Stock Exchange.
For comparison — until that very vote, there were 37 companies. Accordingly, a slight weakening is to be expected, although this should continue to be monitored over the course of the next few months. Overall, it can be assumed that there will be no impact in the short term. Such effects will only manifest themselves in the medium to long term. Regardless of the form Brexit takes, London will nevertheless remain an important financial center within Europe.
About Falk Mueller-Veerse
Falk, Managing Partner at BRYAN, GARNIER & Co in Germany, is an experienced M&A and fundraising professional with over 20 years experience in the technology and internet industry. He has a global network in the investor and acquirer community and closed successful deals with Disney, RIM, Balderton, Swisscom and Telefonica, amongst others.
He is the former head of Durlacher’s Mobile industry research and investment practice (Germany/UK/Spain) and Managing Director of its German office. He founded Mobile Application Holding to acquire companies in Finland, Switzerland and Germany. Falk was board member of a private and public companies in the mobile internet and games sector. He has also been on the advisory board of Frontiers Capital — the wireless-focused VC backed by Carphone Warehouse, as well as advisory board member of the German Silicon Valley Accelerator.
Falk holds a B.Sc. degree in Technology Management (Mechanical Engineering) from the Technical University of Kaiserslautern, Germany, and an MBA from California State University School of Business in the US. He has also studied International Business Management at the Helsinki School of Economics and Business Administration.
About Bryan, Garnier & Co
Bryan, Garnier & Co, founded in 1996, is an independent, full-service European investment bank focused on growth companies. The range of services includes equity analysis, equity sales and trading, private and public capital raising, and M&A services for growth companies and their investors. The focus is on important growth sectors of the economy such as technology, media, telecommunications, healthcare, smart industries, specialty retail and business services. Bryan, Garnier & Co Ltd is a registered broker and licensed with the FCA in Europe and FINRA in the US. Bryan, Garnier & Co is headquartered in London, with additional offices in Paris, Munich, Geneva and New York. The company is a member of the London Stock Exchange and Euronext.