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3 questions to smart minds

IPOs in Germany in 2013

For this 3 questions to B. George

German stock exchange
Photo: B. Georg | Deut­sche Börse
17. April 2013

On average, analysts expect the DAX to rise slightly in the current year. The friendly capi­tal market envi­ron­ment is contri­bu­ting to this. Talanx and Tele­fó­nica Deutsch­land demons­tra­ted in 2012 that larger volu­mes are once again possi­ble. In addi­tion to the announ­ced IPO of LEG, Sprin­ger Science, Kion and Iglo, for example, are mentio­ned as poten­tial issu­ers. The trend: inves­tors are shif­ting from government bonds to equi­ties. — Are there any indus­try focal points emer­ging for upco­m­ing IPOs? Which inves­tors are inte­res­ted in the IPOs?


For this 3 ques­ti­ons to Head of Issuer&Primary Market Rela­ti­ons Deut­sche Börse AG, Frank­furt am Main

1. Which compa­nies are aiming for the stock exchange and in which segment?

Of the 12 IPOs we had in 2012 and so far in 2013, 9 compa­nies opted for the Prime Stan­dard, the most highly regu­la­ted segment on Deut­sche Börse. In the current capi­tal market envi­ron­ment, insti­tu­tio­nal inves­tors in parti­cu­lar expect compre­hen­sive trans­pa­rency and conti­nuous commu­ni­ca­tion and there­fore demand a listing in an appro­priate stock market segment. As far as sectors are concer­ned, it cannot be said that inves­tors prefer certain sectors. We have had IPOs from seven diffe­rent sectors since last year. So this shows that a good busi­ness model that attracts inves­tors does not depend on the industry.

2. Which inves­tors are inte­res­ted in IPOs?

Insti­tu­tio­nal inves­tors are prima­rily addres­sed in IPOs, and it depends on the size of the company which inves­tor comes into ques­tion. Large compa­nies seeking inclu­sion in a selec­tion index such as MDAX® or even DAX® contact corre­spon­din­gly large invest­ment funds, which must include stocks from selec­tion indi­ces in their port­fo­lios. The approach is analo­gous for smal­ler compa­nies: Here, inves­tors are addres­sed who have specia­li­zed in issu­ers of this size in order to diver­sify their port­fo­lio accordingly. 

3. How do you assess the deve­lo­p­ment of IPOs in the medium term? Is this where Germany differs from the rest of Europe and the USA?

Insti­tu­tio­nal inves­tors are prima­rily addres­sed in IPOs, and it depends on the size of the company which inves­tor comes into ques­tion. Large compa­nies seeking inclu­sion in a selec­tion index such as MDAX® or even DAX® contact corre­spon­din­gly large invest­ment funds, which must include stocks from selec­tion indi­ces in their port­fo­lios. The approach is analo­gous for smal­ler compa­nies: Here, inves­tors are addres­sed who have specia­li­zed in issu­ers of this size in order to diver­sify their port­fo­lio accordingly. 

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