Volatility, which has been going back down for a few weeks, in connection with rising share prices and the improved IPO climate expected by market participants all point to an increase in IPOs over the next few months, according to Deutsche Börse.
All in all, the environment for IPOs appears to be steadily improving. The uncertainties on the markets for European government bonds triggered not least by crisis seem to have abated.
The IPO indicator, which is published each quarter, is a measuring instrument for companies seeking capital that aim to go public and that are looking for the right moment to enter the capital market. The indicator is compiled from surveys of market participants and calculations by the Technical University in Munich using Deutsche Börse trading data.
“If you take a closer look at the results of the survey, the fact that issuer sentiment has improved much more than that of other market participants particularly stands out. This development is primarily due to the upward movement in the valuation level. That, in conjunction with falling volatility could form a good basis for increasing issuance momentum,” says Professor Christoph Kaserer from the Technical University in Munich.
