The performance of IPOs in 2019 is poor overall. Only Frequentis AG is in the black with a price increase of just over 1% compared to the issue price. The worst performance is shown by the share price development of the Global Fashion Group. The share price has more than halved compared to the issue price. The share price development since the start of quotation suggests that the decline will continue. Disappointing is the share price development of TeamViewer AG, the last new issue so far. Since the start of trading on September 25, the share price has fallen by more than 13% in the first nine trading days compared to the issue price, despite massive support purchases by the consortium-leading banks. The decline in the share price would probably have been even greater if the lead banks had not already bought back around 1.5 million shares on the market. With an issue volume without greenshoe of just under € 1.97 billion, this means a loss of assets of around € 250 million for investors. An improvement of the share price development also does not seem to be in sight for TeamViewer for the time being, as the share was considered fundamentally overvalued at the time of the IPO with an EBITDA multiple 2019 of approx. 28x in relation to the average value of the bookbuilding range. The fact that the new issue was purely a placement of the private equity investor Permira also has a negative impact.

The IPO of TeamViewer AG is an occasion for us to look at the price development of the new software issues over the last three years. In selecting the companies, we followed the sector classification of Deutsche Börse AG. Accordingly, three new issues took place, whose listing
all in 2018. For all new issues assigned to the “Software” sector, the current share price is below the issue price and none of the new issues outperformed the market as a whole. At around 43%, the price slump at Serviceware SE is by far the most severe. Since its listing, the share price has been trending steadily downwards with the exception of December 2018/January 2019. The fact that the operating result for 2018 is slightly lower than in the previous year cannot be a decisive factor in the share price performance, as the burden on earnings is due to the further establishment and expansion of sales. Overall, the economic development of the company and the expansion of its market position has been positive since the listing. Nevertheless, there is criticism of the share’s valuation, which is still perceived as too high. If the criticism is followed, the share price will fall even further.

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