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.