The New Issue Year 2018 — a Cri­ti­cal Review

Abs­tract of the artic­le: The new issue year 2018 — a cri­ti­cal review — by Dr. Kon­rad Bösl

The new issue year 2018 — a cri­ti­cal review

World­wi­de, the num­ber of new issues fell by 21% year-on-year and by just over 16% in Euro­pe, while the volu­me of issues increased by 6% world­wi­de due to a series of mul­ti-bil­li­on issues, but fell by 17% in Euro­pe. The fourth quar­ter was par­ti­cu­lar­ly weak with a 34% drop in the num­ber of new issues and a 10% decli­ne in issue volu­me.

In con­trast to 2017, issuing acti­vi­ty in Ger­ma­ny deve­lo­ped bet­ter than in Euro­pe and world­wi­de. With 17 new issues (pre­vious year ele­ven) and the hig­hest issue volu­me sin­ce the turn of the mill­en­ni­um at € 11.25 bil­li­on (pre­vious year € 2.64 bil­li­on), the new issue balan­ce for Ger­man con­di­ti­ons in 2018 is posi­ti­ve over­all. Nevert­hel­ess, we must not lose sight of pro­por­tio­na­li­ty. In the USA the­re were more than 200 new issues in 2018, in Chi­na inclu­ding Hong Kong a good 300 despi­te a mas­si­ve slump — in Ger­ma­ny just 17.

I Strong new issu­an­ce acti­vi­ty in Ger­ma­ny under dif­fi­cult con­di­ti­ons

The over­all con­di­ti­ons for new issues in 2018 were poor. The DAX fell by just under 18 % in the cour­se of the year, with the second half alo­ne accoun­ting for a decli­ne of just under 14 % in the face of high vola­ti­li­ty. The DAX alre­a­dy lost over 1000 points in the first quar­ter. Nevert­hel­ess, five com­pa­nies found their way to the stock exch­an­ge, inclu­ding the two bil­li­on-euro issues of Sie­mens Healt­hi­neers and DWS. [2] The high level of uncer­tain­ty about poli­ti­cal and eco­no­mic deve­lo­p­ments world­wi­de and in the Euro­pean Uni­on led to an incre­asing risk aver­si­on and pri­ce sen­si­ti­vi­ty among inves­tors, so that the­re were only five new issues in the second half of the year (pre­vious year: 6). Howe­ver, even in the extre­me­ly weak fourth quar­ter, Knorr-Brem­se AG mana­ged the third bil­li­on euro issue of the year. The bil­li­on-euro issues alo­ne accoun­ted for a good 81% or € 9.35 bil­li­on of the issue volu­me. Sie­mens Healt­hi­neers and Knorr-Brem­se were the fourth and fifth lar­gest new issues to date in Ger­ma­ny and in 2018 world­wi­de.

II Cha­rac­te­ristics of new emis­si­ons acti­vi­ty in Ger­ma­ny in 2018

15 issuers cho­se the Prime Stan­dard for lis­ting and two.… Artic­le as pdf. Con­ti­nue rea­ding.