HAMBURG (dpa-AFX) - After rather disappointing IPOs in recent years, experts expect a little more movement on the German capital market in the coming year. "Given the current high valuations on the capital market, many companies are in the queue for an IPO in 2025," said expert Jens Hecht from the management consultancy Kirchhoff Consult on the expected revival. The stock market remains an attractive long-term source of growth capital. However, despite optimistic signs, the market for IPOs (initial public offerings) remains challenging.
"Investors continue to be cautious, which is also due to the negative price developments of numerous new issues," said Hecht. Although the leading index Dax 2024 was able to benefit from the stabilizing global economy and monetary easing and exceeded the 20,000-point mark for the first time in December, the performance of new issues remained disappointing.
Three of the four new issues in the German Prime Standard market segment this year were listed in the red at the end of November. According to the Kirchhoff experts, the scientific publisher Springer Nature was the exception in this period with a price increase of just under 9 percent. Even before Springer Nature, the IPO of perfumery chain Douglas was the one with the largest issue volume. The IPOs of the radiopharmaceutical manufacturer Pentixapharm and the Baltic fintech Eleving were significantly smaller.
Although the number of initial listings rose from three in the previous year to four, the Prime Standard segment recorded a decline in issue volume from EUR 1.9 billion to EUR 1.5 billion in 2024. According to Kirchhoff, this was the second-lowest figure in the past ten years.
"Despite uncertainties, the markets continue to offer attractive valuations. In 2025, we expect 8 to 10 borrower gates in the Prime Standard," said expert Hecht. However, according to him, much more is possible. "However, in order to realize the actual potential of up to 50 IPOs per year, a stronger demand for equity culture and fewer regulatory hurdles for SMEs are required in Germany," the expert added.
The consultancy currently considers Berlin-based fintech Raisin and energy start-up 1Komma5° to be among the candidates for an IPO. In particular, companies from future-oriented sectors such as technology and energy could benefit from an improved market environment./men/tav/nas