Monday, December 09, 2019
Brexit, trade dispute, economic problems: Disturbing factors for the stock markets are enough this year. No wonder, an investigation that the number of IPOs in 2019 has collapsed. Is there hope for 2020?
According to one study, the year 2019 was the weakest year for initial public offerings in Germany since the global financial crisis. Unsettled by Brexit, trade conflicts and fears of a recession, only three companies put an IPO in the tightly regulated segment Prime Standard – a low since 2009. At the same time, the value of the issued shares had fallen by almost 70 percent to 3.6 billion, according to an evaluation the Hamburg consulting firm Kirchhoff Consult. In 2018, it had counted 16 IPOs with 11.6 billion euros issue volume. Deutsche Börse's Prime Standard is the segment with the highest transparency requirements for companies. A recording is a prerequisite to be listed in Dax indexes such as Dax or MDax.Confidence for 2020The few bright spots in 2019 included the multi-billion dollar IPO of the Swabian software company TeamViewer. The Volkswagen truck subsidiary Traton made the stock market debut. "The economic uncertainties weighed for many stock market candidates heavier than the very good performance in the stock market," said company boss Klaus Rainer Kirchhoff. For the coming year he is optimistic again. "The continued loose monetary policy of the central banks and the increasingly positive signals in the trade dispute make us confident that by 2020 more companies will go public." The pipeline of stock market candidates is well filled. Among the possible initial listings are the authors of Thyssenkrupp's elevator division and the Siemens Energy division, which is set to go live in September 2020. The motorhome provider Hymer is a candidate.