The decline in IPOs: A financial expert analyzes the reasons and alternatives for companies

The decline in IPOs: A financial expert analyzes the reasons and alternatives for companies

According to a report by www.sueddeutsche.de, the CEO of Deutsche Börse, Theodor Weimer, is skeptical about the IPOs. He argues that companies can also finance their growth through private capital, such as financial investors (private equity), which is more advantageous in many cases. This is also reflected in the numbers, as there has been a decline in stock market listings in recent years, with more and more companies tending to turn to financial investors instead of going public.

The effects of this development can be diverse. On the one hand, IPOs could continue to decline in the future, which would affect the stock market as a whole. Fewer companies on the stock exchange could lead to a less attractive market and also influence the investment behavior of private investors. In addition, the dominance of financial investors could lead to inequality in participation in economic success, as their investments usually require higher minimum amounts and thus exclude less wealthy investors.

In addition, companies that have planned to go public in the past may now increasingly consider alternatives. This could lead to the financial industry as a whole becoming more influenced by financial investors and the relationship between companies and the stock exchange changing.

Overall, it can be said that the skepticism towards IPOs from a prominent representative of the financial world is likely to lead to discussions about the future of the stock market and the financial industry. The role of stock exchanges in the focus of companies' financing strategies could continue to change.