Capital market
Weak year for IPOs – hope for 2025
In uncertain times, fewer companies dare to take the plunge. There could be more IPOs again next year. However, the German market remains far below its potential.
After a rather weak year overall, experts see opportunities for more IPOs in 2025. “The current year-end rally in many markets and the current low volatility are positive for the IPO year 2025,” says Martin Steinbach, partner at the auditing and consulting firm EY.
According to EY, there were 1,215 initial public offerings (IPOs) worldwide in the year that ended, ten percent less than the year before. The companies brought in around 121.2 billion dollars (115.4 billion euros), a decrease of four percent.
In Germany, seven companies dared to take the step onto the trading floor in 2024. A year earlier there were eight. The largest IPO in this country in 2024 was the listing of the perfumery chain Douglas in March with an issue volume of around 890 million euros, followed by the scientific publisher Springer Nature with almost 600 million euros.
More IPOs expected in Germany again
“If the positive momentum in the capital market continues and a new government quickly and consistently implements the necessary steps to stimulate the economy, up to ten IPOs are possible in Germany in the coming year,” says Steinbach. However, based on its economic power, Germany has the potential of 40 IPOs per year.
The business and consulting company PwC is also confident that more companies will dare to go public again in 2025, despite the ongoing uncertain situation. “The number of IPOs in Frankfurt for the year as a whole is likely to be between five and ten, perhaps even in the double-digit range again,” predicts PwC expert Stephan Wyrobisch.
According to the EY overview, the world’s largest IPO of 2024 was the US company Lineage, which raised around $5.1 billion at its IPO in July. The largest IPO of the year in Europe was the initial listing of the Spanish consumer retailer Puig Brands in May with a good $2.9 billion.
Germany’s investors are gaining more trust in stocks
According to a YouGov survey, trust in stocks among working people in Germany has increased: a quarter of the population now consider stocks to be the most trustworthy investment when it comes to retirement planning. Home ownership is still in first place with 42 percent. In the summer, the pollsters surveyed 3,748 working people aged 15 and over on behalf of HDI Insurance.
EY PwC press releases on IPOs in 2024
dpa
Source: Stern
