Since 2007, the IPO climate has changed not only in Germany, Europe, but worldwide. As a result of the financial crisis triggered by the Lehman bankruptcy, and in the wake of the European currency crisis, companies are finding it increasingly difficult to raise equity capital through traditional financing channels. Therefore, the question of alternative financing options arises.

In comparison, equity represents the most important basis for corporate financing. A good equity ratio improves ratings, ensures entrepreneurial room for maneuver and promotes innovation, growth and jobs. If there is no path to solid equity financing, companies are faced with the question of how to finance future projects, growth and investments in innovations.

In comparison, equity represents the most important basis for corporate financing. A good equity ratio improves ratings, ensures entrepreneurial room for maneuver and promotes innovation, growth and jobs. If there is no path to solid equity financing, companies are faced with the question of how to finance future projects, growth and investments in innovations.

The IPO Market: A Review

Since the beginning of the financial crisis and as a result of the European currency crisis, it has become increasingly difficult for companies to raise equity capital through traditional financing channels. This can be seen, for example, in the IPO activities on the equity side (see Fig. 1). While the number of IPOs within Germany declined sharply from mid-2007, companies have been raising more money via the stock exchange again since 2010. This is particularly true for larger and often private equity-financed companies ( see Fig. 2).

The recent IPO of Brenntag AG, for example, has shown that going public can be worthwhile, especially for investors. The investors at the time took the company public in 2010. While the first shares were placed at an issue price of 50 euros, the private equity companies sold their last shares at 89 euros, thus benefiting from the positive share price performance of Brenntag AG.