OTS: Börsen-Zeitung / The pipe is getting narrower, comment on the market for …

The pipe is getting closer, comment on the market for IPOs by Christoph


Frankfurt (ots) – It will be as easy as this year for companies to participate in the

Strive for the stock market, not have it again so soon. Stock indices at record high,

low volatility and financial investors looking for a lucrative one

Exits from their investments form the basis of the previous wave of IPOs,

which was bigger in Europe than it has been since 2007. Trillion dollar state

Economic stimulus programs and an initially still open cash tap from the central banks

contributed to equities nearing zero yield on bonds

appeared without alternative.

That is starting to change now. The fourth and fifth corona waves together

Delivery bottlenecks and the lively inflation in many places that the

Restriction of bond purchases by central banks and the following soon

Making rate hikes seem inevitable, make the environment up for

IPOs much more difficult.

Investment bankers still spread the usual optimism for a hoped-for

next IPO wave in spring. “The pipeline is full,” it sounds in unison

all Frankfurt skyscraper floors. First of all, that’s also true. Alone in

Germany have two dozen companies in the long queue of

potential stock market candidates – including as large as the VW sports car subsidiary

Porsche, possibly also the ex-Thyssenkrupp elevator division TK Elevator or

the oil company Wintershall Dea. However, for some companies this will work out the full

Pipeline turn out to be a thin pipe too narrow to slip through. In

Germany have the online optician Mister Spex and the

Online used car dealer Auto1 shown with their poor price development,

how much money investors can lose on IPO stocks. Two across Europe

There have already been a dozen rejections: the specialist logist Transoflex, the watch dealer

Chronext and the language learning app Babbel, for example, had to get their IPO in this country due to a lack of them

cancel sufficient demand of the more choosy investors.

Given historically high equity valuations, the risk of a strong one grows

Correction. The courses are considered to be exhausted. That stocks are not without alternatives

are, proves the California pension fund Calpers – with 500 billion dollars

Volume one of the largest capital accumulation centers in the world. Calpers boss Marcie

Frost increases the private equity stake in the portfolio from 8 to 13 percent, and

the share of shares drops from 50 to 42 percent. Other houses arrange them as well

Allocation of capital new. It could be like this until the smoke has cleared

some IPOs fall by the wayside.

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