Anticipated German IPOs could reach up to ten by 2025, according to EY's prediction.
Title: Tennies and Tanks: Top IPO Contenders in Europe's Booming Market for '25
Frankfurt on the Main
Gearing up for a potential IPO storm, professional services firm EY anticipates around ten IPOs in Germany next year. Here are some candidates Stormin' the Stock Market:
- Stada: Dubbed the "Drug Lord of Deutschland," this generic pharmaceutical giant hidden in Bad Vilbel is a former pet project of financial giants Bain and Cinven. With the debt-laden company previously fetishing offers up to €10 billion from CD&R and GTCR, the stage is set for an IPO spectacle.
- Thyssenkrupp Marine Systems: This submarine-building German titan, along with KNDS, could rocket into the stock market soon.
Last year, IPOs plummeted globally by 10% to 1,215, with a 4% decrease in volume to $121 billion. However, Europe bucked the trend, with a 41% spike in emission volume to €19.1 billion. EY partner Martin Steinbach cheerfully expects this upward trajectory to carry on into 2025.
With Douglas, Springer Nature, and Renk stumbling their way into 2024's IPO lineup—raising a measly €2 billion combined—something's gotta give. In the U.S., Lineage slipped into the record books as the year's biggest IPO with a frosty $5.1 billion. Meanwhile, Spain's Puig Brands swathed the European crown with a warm €2.9 billion IPO.
Private equity and venture capital firms are stripping down their portfolios of older corporate wards in anticipation of repaying some hard-earned capital to their cranky investors. But before any significant handshakes, expect to see a flurry of IPOs, even with trade war threats on the horizon in 2025. In 2024, private equity and venture capital firms accounted for 12% of all IPOs, nabbing 46% of the volume.
The stage is set for a thrilling spectacle, with Stada at the forefront. Deutsche Bank, Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley have reportedly joined forces to accompany this forthcoming IPO, already in advanced stages of preparation.
Other Potential European IPO Candidates
- 1Komma5: A cheese-loving energy star-up German company.
- Raisin: A clever German fintech platform serving up financial solutions since 2013.
- Berlin Fintech Raisin: Stay tuned for a ground-breaking IPO in 2025.
- Stada, of course, remains a top contender for Germany and Europe.
- Ebury: An exciting fintech company gunning for the European scene in 2025.
Barring any catastrophic global events or political hactions, the IPO scene should be a bustling hive of activity in 2025. If timing, post-IPO valuation potential, capital market sentiment, and market expectations align, investors can expect a rich harvest in the upcoming year.
Note: Additional notable IPO candidates from around Europe include BrainLAB (Germany), Autodoc (Germany), Odido (Netherlands), Verisure (Sweden), SMG Swiss Marketplace Group (Switzerland), Cirsa (Spain), ISS Stoxx (Europe), and Doctolib (France), though some companies have not yet filed for IPO.
- The financial giants Bain and Cinven, having previously managed the pet project Stada, a pharmaceutical giant in Germany, are anticipating an IPO spectacle for the debt-laden company, with potential offers reaching €10 billion.
- The private equity and venture capital firms are preparing for a flurry of IPOs in 2025, with the aim of repaying capital to investors, despite trade war threats on the horizon.
- In addition to Stada, potential European IPO candidates include Berlin Fintech Raisin, set to break new ground with an IPO in 2025, and Ebury, an exciting fintech company aiming for the European scene in the same year.
- The IPO scene in 2025 is expected to be a bustling hive of activity, with investors potentially reaping a rich harvest if timing, valuation potential, capital market sentiment, and market expectations align.
