welt.de
Fewer IPOs in 2024, but experts predict a rise in 2025
Global IPOs fell 10% in 2024 to 1215, raising \$121.2 billion, while Germany saw 7 IPOs (down from 8), with Douglas's \$967 million listing being the largest; however, experts predict a rise in 2025 due to market conditions and government policy.
- What factors contribute to the prediction of increased IPO activity in 2025, despite a decrease in 2024?
- Despite a weak 2024, with only 1215 IPOs globally (a 10% decrease) raising \$121.2 billion (a 4% decrease), experts predict a rise in 2025 IPOs due to the current market rally and low volatility. In Germany, IPOs fell from 8 in 2023 to 7 in 2024, with Douglas being the largest at \$967 million.
- How does the German IPO market compare to its economic potential, and what factors might explain the discrepancy?
- The positive market momentum and a new government's economic stimulus could lead to up to 10 German IPOs in 2025, although Germany's economic potential suggests 40 are possible. PwC forecasts 5-10 IPOs in Frankfurt, potentially reaching double digits. Globally, Lineage's \$5.1 billion IPO was the largest in 2024.
- What are the potential long-term implications of the observed shift in public trust towards stock market investments in Germany?
- Increased German public trust in stocks as a retirement investment (25% according to YouGov, behind only real estate at 42%) could further fuel 2025 IPO activity. However, realizing Germany's full IPO potential requires consistent government action and sustained positive market conditions.
Cognitive Concepts
Framing Bias
The article frames the information positively, highlighting the potential increase in IPOs in 2025 based on expert opinions. The headline (if any) would likely emphasize this positive outlook. The optimistic tone from the beginning sets the stage for interpreting the statistics about the decrease in IPOs in 2024 as a temporary setback.
Language Bias
The language used is largely neutral. However, phrases like "overall rather weak year" and "positive momentum in the capital market" express subjective assessments and could be made more precise.
Bias by Omission
The article focuses primarily on the opinions of experts from EY and PwC, potentially omitting perspectives from other financial institutions or market analysts. While acknowledging a rise in public trust in stocks in Germany, it doesn't explore reasons behind this shift or its potential impact on IPOs. The article also lacks details on specific challenges facing companies considering IPOs in 2025.
False Dichotomy
The article presents a somewhat simplistic view of the IPO market, focusing on the optimistic predictions of EY and PwC without extensively exploring potential downsides or counterarguments. The potential for up to 10 IPOs in Germany is presented as a possibility alongside the unmet potential of 40 IPOs, but the factors contributing to this gap aren't sufficiently elaborated.
Sustainable Development Goals
The article reports an increase in IPOs (Initial Public Offerings) in 2025, indicating potential for job creation, economic growth, and increased investment opportunities. More IPOs can lead to more capital being invested in businesses, thus supporting economic expansion and potentially creating jobs. A rise in IPOs also shows confidence in the market, which is generally a positive sign for economic health.