FRANKFURT (dpa-AFX) - When the German shoe manufacturer Birkenstock goes public this Wednesday, it will not be in the financial center of Frankfurt, but on Wall Street. Also otherwise the balance to Borsengängen of the past years in Germany turns out rather mau. Some companies even withdrew from the Frankfurt trading floor recently, and two more are likely to follow. According to experts, however, a turning point could have been reached.

Why is Birkenstock going public in the USA?

The traditional manufacturer Birkenstock, headquartered in Linz am Rhein, has chosen the New York Stock Exchange NYSE for its listing. Experts considered the decision a defeat for the financial center Frankfurt. The decisive factor is said to be the greater liquidity on the other side of the Atlantic and the associated better chance of getting rid of the shares at the highest possible price. Especially in times of high inflation and gloomy consumer sentiment, consumption-dependent stocks react sensitively. In addition, North and South America are the most important regions for Birkenstock, followed by Europe.

On Wednesday morning, Birkenstock set the price for its securities, listed under the symbol "BIRK," at $46 - in the middle of the range of $44 to $49. The share placement will thus raise just under $1.5 billion (about 1.4 billion euros). About two-thirds of that will go to principal owner L Catterton, which is linked to luxury group LVMH and its billionaire boss Bernard Arnault. L Catterton will retain control of Birkenstock after the Borsengang.

What was the latest situation regarding Borsengang in Germany?

Over the past two decades, the number of Borsengänge in Germany has been on the decline. At the turn of the millennium, the dotcom bubble led to a veritable boom in IPOs (initial public offerings), with a triple-digit annual number of borse debuts throughout the regulated market. Since 1997, Deutsche Borse has recorded 165 new issues in the most demanding Prime Standard segment. Of these, 22 took place in 1999 alone, and a further 24 in the following year. Since then, the most successful year so far has been 2006, with 16 new companies.

However, according to asset manager Schroders, the number of companies listed on the stock exchange has also fallen sharply on the capital markets in the USA and Great Britain. Experts cite mergers, high administrative and regulatory hurdles, and alternative ways of raising capital as the reasons.

Which companies have recently left the German stock exchange trading floor?

At the beginning of the year, Linde, formerly the most valuable member of the Dax index, left the Frankfurt stock exchange. Until then, the shares of the industrial gases group had been listed in both New York and Frankfurt. Although the structure of this dual Borse listing had served the company well from the outset, it had limited the valuation of the shares due to the European restrictions and additional complexity, it was said in justification.

In addition, two more companies are likely to turn their backs on the Frankfurt Stock Exchange soon, albeit for a different reason: the financial investor Cinven wants to take over the laboratory services provider Synlab completely again. The major shareholder had only brought the company to the stock exchange in the spring of 2021. At the time, the issue price was 18 euros, valuing the company at around four billion euros. Before the takeover bid, it was less than half that.

The story is similar to the takeover bid by investor EQT for Suse. The software provider had also been brought to the stock exchange in the spring of 2021, before EQT initiated the roll backwards this year. Business problems were cited as the reason. Suse's share price has fallen by one-third since the IPO.

What have been the 2023 Borsengangs in Germany so far?

In July, Nucera, the hydrogen subsidiary of Thyssenkrupp, took the plunge. The first weeks after the IPO were largely stable. Since the end of August, the share price trend has been negative: Nucera shares have lost around ten percent since their first day of trading. But the market as a whole has also deteriorated significantly.

This was followed at the end of September by Schott Pharma, the biggest German stock market fall so far this year. Following losses in recent days, the shares of the pharmaceutical division of the Mainz-based specialty glass manufacturer Schott are now back at around the level of their issue price.

At the beginning of October, the defense supplier Renk also wanted to take the plunge. But the plan was called off a few hours earlier.

Why did Renk cancel its Borsengang?

Augsburg-based armored gear manufacturer Renk justified the cancellation of its IPO planned for October 5 with the gloomy market environment. According to informed persons, the attempt to sell the shares was already sluggish.

In the days before the deadline, the mood on the Borsen had then increasingly deteriorated. Renk and its owner, the investment company Triton, are said to be examining the option of a Borsen exit at a later date.

What is the assessment for the future?

Market experts believe that a turning point has been reached with the borse exits that have already taken place this year. The consultancy PWC described the IPOs of Schott Pharma and Thyssenkrupp Nucera as "signs of life on the German issuance market" and expects other companies to follow.

An upward spiral could result from successful IPOs, according to Ben Laidler, market analyst at eToro, a network platform for investment themes. "The increased interest in IPOs could lead to more companies wanting to raise capital, which would stimulate the IPO market overall." Successful IPOs, Laidler believes, could strengthen Germany's image as an attractive market for investment and attract foreign investors.

According to investors, whether an IPO actually succeeds also depends on how large and profitable the industry is in which the borse newcomers operate and what price expectations they bring to the market. Fuel card provider DKV is traded as the next most likely candidate, as well as perfume and cosmetics retailer Douglas and mobility provider Flix for early 2024./lew/la/ngu/tih

--- By Leonie Weigner, dpa-AFX ---