In an international comparison, the Deutsche Börse (Frankfurt Stock Exchange) remains the most attractive listing venue for companies aiming for an IPO.
Current studies compare the world’s primary market activities and terms for listing on the Frankfurt Stock Exchange to the leading international exchanges. The study analyzes terms for IPOs on the
Frankfurt Stock Exchange and compares them with the stock exchanges Euronext, Hong Kong Stock Exchange (HKSE), London Stock Exchange (LSE), NASDAQ und New York Stock Exchange (NYSE).
Almost every third listing of a company, which chose Deutsche Börse as a listing venue, was an Initial Public offering (IPO). This includes a first public offering of shares with an approved prospectus. Only 0.3 percent of all listed companies on the Alternative Investment Market (AIM) in London had an IPO at this venue.
Sector focus is key to selecting a listing venue for an IPO – especially for companies from the emerging markets. The Deutsche Börse leads among companies whose business is in the alternative energies, high technology, chemical and industrial sectors. In alternative energies alone, 97.8 percent of the entire placed IPO volume has been placed on the Frankfurt Stock Exchange.
Another key criterion is the durability of a stock exchange listing. Deutsche Börse clearly stands out in this respect: No company with an IPO in Frankfurt between January 2001 and March 2008 has become insolvent. The percentage of insolvencies for Euronext is nearly three percent and for LSE more than five percent. The proportion of delistings is also correspondingly high. The percentage of delistings on LSE is more than ten percent, while at Euronext it is almost seven percent, with no delistings from HKSE or Frankfurt Stock Exchange during the period stated.
For the period from January 1999 to March 2009, Deutsche Börse received top marks as a listing venue in a global comparison. Companies benefit from the lowest capital costs and the highest liquidity. Subjects of the examination included the costs of market access, the subsequent costs for further capital increases and liquidity. Deutsche Börse’s Prime Standard and General Standard rank above the other “main markets”, with its Entry Standard also ranking above other alternative markets.
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