Mythbusting

MythbustingDid you already know?

Corporate financing via the capital market is especially appealing for companies that are achieving dynamic growth, are innovative, and can lay the foundations for future successes. An IPO enables companies to raise a large volume of capital and repeating this process through capital increases. This benefit to going public, even in difficult economic times, is broadly known. Have you already known the following facts which highlight advantages of going public at Frankfurt Stock Exchange?



There are some myths to be uncovered

Myth 1: It takes unicorn status to go public at a stock exchange

On the contrary:

74% of all companies listed in Frankfurt in the last five years were not unicorns but of a valuation under €1 billion.

Myth 2: There are mostly German investors represented at Frankfurt Stock Exchange

On the contrary:

68% of the trading volume on Xetra shows Frankfurt is in the focus of international investors.

Myth 3: Pharma and Healthcare stocks can only grow in the US

On the contrary:

stocks in the DAXsupersector “Pharma & Healthcare” showed an impressive growth rate of 463% over the past ten years.

Myth 4: Only long-established German industrial companies are listed in Frankfurt

On the contrary:

over the past ten years, the share of tech stocks grew by 354%.

Myth 5: Companies listed in Scale are only operating in Germany

On the contrary:

the segment comprises a broad variety of internationally operating SME companies. Plus, recent Scale IPOs all had international investors.

 

Listing trends uncovered

The traditional IPO is the listing of a company's shares on an organized capital market. Shares from the portfolios of existing shareholders will be offered in connection with a capital increase. This is also referred to as an initial placement. While the IPO is the most famous way to raise financing on the capital market, there are additional listing trends:

  • Direct listing: In a Direct Listing process, existing shares (founder, employee and investor shares) will be listed without raising capital. You can find more information on this in our podcast.
  • SPAC: SPAC or acquisition purpose company with no own business operations. Its sole objective is to raise capital through a listing, the proceeds of which are subsequently used to acquire a non-listed company within a limited period of time and to indirectly list it on the stock exchange.
  • Carveout/Spin-off: Subsidiaries of companies that are already listed on the stock exchange can conduct a carveout IPO, which combines a reflection of the shareholder base with a direct listing process.
  • IPO-Bonds: IPO candidates may use convertible bonds or bonds with stock options, combined with a direct listing of the created shares on the IPO exercise date.

Do you want to learn more?

Whether you are a company or an investor, we want to make sure you have all relevant information to explore and consider the right options for you to engage in a capital market financing solution.

Sign up for our specific workshop formats in the info box below or directly get in touch with us to get your questions answered. We look forward to hearing from you!

Peter Fricke

Contact the Capital Markets Team

Peter Fricke, Head of Capital Market Sales

Phone +49-(0) 69-2 11-1 18 80
E-mail preIPOservices@deutsche-boerse.com

 

Additional Information

Contact

Secure the future and competitiveness of your company. We would be pleased to inform you about the advantages of raising equity and debt capital through the stock exchange.

Please contact us:

Capital Markets Team

Germany