|
Become a member
The IPO is accompanied by high costs. On average, ten percent of the issue volume is required for its preparation. Because of this hurdle, successful German companies may postpone going public.
Furthermore, there are ongoing listing costs. These result from:
- the fees for the stock exchanges,
- the change in financial reporting,
- investor relations, and
- the holding of general meetings.
Good German shares: TeamViewer as a winner in the Corona crisis
TeamViewer represents a success story from 2019. The company from the tech and communications sector recorded a strong share price gain in 2020. While the Corona pandemic rocked the stock market in March 2020, crisis winners stand out. These include businesses and technologies that make it easier to work from home.
TeamViewer provides users with straightforward remote management and access software. For example, the technology allows users to access files on another computer. For project work during social distancing, this software proves to be advantageous. It is therefore not surprising that the company's share price reached a peak during the Corona crisis.
Throughout Germany, the products of the company from Göppingen meet with approval. Due to this development, the tech provider expects an accelerated billings growth of more than 60 percent.
Siemens Energy as a stock newcomer
Among the German stocks that will go public in 2020 is the security of Siemens Energy. The company, which generated revenues of 29 billion euros in 2019, plans its initial listing in September 2020. The group officially announced the IPO, so a pullback is unlikely. Investors are hoping for a beneficial development of the company. This trumps with three advantages:
- the advantage of scale,
- a large backlog of orders.
- leading technology.
20 percent of the world's energy supply is based on Siemens Energy products. Due to the high demand, the future of the group looks bright. According to the company, it has an order volume worth 70 billion euros on its books. Siemens Energy boasts several patents and many years of experience. The quality seal "Made in Germany" contributes to the good future prospects of the company.
Siemens spun off Siemens Energy
Behind Siemens is one of the most valuable DAX companies. The broadly diversified technology group filed the most patents across Europe in 2018. Several business models and divisions ensure the company's role as a conglomerate. The past showed that unmanageable corporate structures are disadvantages.
Therefore, the Siemens management under the leadership of Joe Kaeser decided to separate business units from the group. These divisions - such as Siemens Energy - go public separately. Back in March 2018, Siemens Heathineers, the medical technology division of Siemens, celebrated its IPO. Within two years, the share price increased by half. On top of that come the dividends.
This development gives hope for a rising share price in Siemens Energy after the IPO at login Exness area. By detaching itself from several business units, Siemens is incurring costs. These result from the independence of the individual divisions. In the medium to long term, the following advantages are apparent:
- Entrepreneurial freedom prevails.
- Each division makes quick and decentralised decisions.
- The responsibility of the employees increases.
- Administrative costs are reduced.
- Bureaucracy is reduced.
In the best case, the spin-off results in greater turnover growth for the sector. This results in a higher profit margin. Shareholders hope for an above-average development of the share price.
| 
