During the German Equity Forum on Monday Christoph Kaserer (Technical University, Munich) and Dirk Schiereck (European Business School) presented the report concerning listing venue for companies aiming for an IPO. The professors draw the parallels among international companies ranking Deutsche Brse as most attractive listing venue.
The study comprises the analysis of the worlds primary market activities and terms for listing on the Frankfurt Stock Exchange to the leading international exchanges. The comparison includes such stock exchanges as Euronext, Hong Kong Stock Exchange (HKSE), London Stock Exchange (LSE), NASDAQ und New York Stock Exchange (NYSE) and Deutsche Brse correspondingly.
Subjects of the examination included the costs of market access, the subsequent costs for further capital increases and liquidity.
Compared with client amount listed on LSE and Euronext during the period from January 2005 until March 2008 Deutsche Brse moves forward because every third listing of a company was Initial Public offering (IPO). In Alternative Investment Market (AIM) Deutsche Brse possesses 59.6 % of IPOs versus 0.3 % in London.
Deutsche Brse leads among companies whose business is in the alternative energies, high technology, chemical and industrial sectors. In alternative energies alone, 97.8 % of the entire placed IPO volume has been placed on theFrankfurt Stock Exchange.
Concerning the durability of a stock exchange listing Deutsche Brse also holds stable positions without insolvencies among the companies with an IPO in Frankfurt. The percentage of insolvencies for Eurex is nearly 3% and for LSE more than 5%. While at Euronext it is almost 7 %, with no delistings from HKSE or Frankfurt Stock Exchange during the period between January 2001 and March 2008.
L.D.