Conference Magazine - GoingPublic.de - Deutsches Eigenkapitalforum

Dear Readers,
If exchanges were mere trading platforms for a self-serving
financial sector, with some post-trade and information
services attached, they would not have survived for nearly
600 years. Exchanges, however, are much more than that.
Fundamentally, they provide companies with access to
capital. They organise the process of capital allocation
according to market principles. They provide investors with
information and platforms that enable them to channel
capital into sectors where it is needed most. In difficult
times such as those we are going through, with unprecedented
levels of public debt and crippling insecurity about
growth and inflation, this is more important than ever.
Deutsche Börse provides companies with many ways of
gaining access to capital. Regarding access to equity capital,
there is firstly the Entry Standard for companies that are
relatively young and small, but at the same time already
mature; secondly, the General Standard, which is in line with
EU listing requirements; and thirdly, the demanding Prime
Standard that fulfils the most advanced global listing standards.
In addition to equity capital, since the beginning of
2011 small- and medium-sized enterprises and growing
start-ups have been given the opportunity to issue bonds in
the Entry Standard. This year, this is supplemented by a new
bond segment in the Prime Standard, in response to growing
demand both from issuers and investors.
However, while exchanges can set up these channels,
supported by an ever more sophisticated system of gates
and locks, they cannot create the flow that fills them. For
this, they have to rely on the willingness of market participants
to invest – which in turn depends on the economic
and political circumstances of the market. These circumstances
are currently going through a period of stagnation.
An anxious “wait-and-see” attitude prevails, which is not
showing much prospect of abating in the near future.
This is also reflected in part of this year’s primary markets
statistics. Indeed, during the first three quarters of 2012, the
total issue volume reached around EUR 57 million, with
seven initial public offerings, four of them in the Prime
Standard and three in the Entry Standard – an admittedly
disappointing result. In the fourth quarter of 2012, though,
the market has seen initial and long-awaited signs of
revival, with three major IPOs raising a total of EUR 2.3
billion in the Prime Standard.
Furthermore, capital increases reached the quite substantial
value of around EUR 6 billion. And in our young
corporate bond segment for “Mittelstand” and younger
companies, the Entry Standard for Corporate Bonds, EUR
474 million was raised during the first ten months of 2012.
The new bond segment, Prime Standard for Corporate
Bonds, designed for the larger corporate bonds, started on
8 October 2012 with the first bond – issued by Deutsche
Börse AG, with very favourable results. Soon after, it was
followed by a second successful bond issue. The aggregated
issuing volume amounted to EUR 675 million. In other
words, the potential is huge.
In any case: We at Deutsche Börse remain not only
committed to maintaining our primary markets, but also to
developing them in response to the needs of issuers and
investors. Especially the financing needs of issuers remain
among our top priorities. The Frankfurt Stock Exchange
provides issuers with direct access to professional
investors worldwide, intermediated by around 230 inter -
national trading participants all over Europe and beyond.
Being listed here not only gives access to capital, but also
brings global recognition as a leading brand.
This new Conference Magazine contains background
articles for this year’s German Equity Forum, written by
capital market experts and practitioners. I hope they will
provide you with useful information and advice on how to
flourish even in times as these.
Yours sincerely,
Dr. Reto Francioni
CEO, Deutsche Börse AG
Dr. Reto Francioni
Editorial
Deutsches Eigenkapitalforum 2012 Page 3