Initial Public Offering: Worthwhile Investment Prospect?
In the coming weeks, a German company will join the stock exchange, marking its entry into the Prime Standard [p.1]. This move comes as Initial Public Offerings (IPOs) are making a comeback, with several large ones planned for March, including Reddit [p.2].
The global IPO market demonstrated resilience in the first half of 2025, with a total of 539 listings raising US$61.4 billion, marking a 17% year-over-year increase in proceeds despite a 4% decline in deal volume [1]. The US led the charge, with 109 IPOs, driven by a record number of cross-border listings [1]. Newly listed companies in the US are trading an average of 15% above their IPO prices [2].
Standout performers include Circle, which surged over threefold since its listing, and CoreWeave, a cloud computing firm focused on AI infrastructure that has risen over 300% since its public debut [2][3]. Average tech IPO returns are tracking at 85% year-to-date, though this drops to about 30% when excluding Circle [3].
There is a renewed investor appetite for companies with innovative and strategic relevance, especially those in the AI and DeFi sectors [2]. Some issuers are considering listings in the fourth quarter of 2025, encouraged by improving market conditions and institutional engagement [3].
Meanwhile, in Germany, the partial legalization of the industry has not brought a breakthrough, and profit hopes may be fading [p.42]. The operator of wind and solar parks in Hamburg is attracting financial investor attention [p.8], and Bilfinger is back in the MDAX after an absence of over six years [p.10]. However, there are no changes in the DAX due to Bilfinger's return.
As investors eagerly await the new IPOs, they can turn to €uro am Sonntag for answers about the performance of IPO stocks as an investment [p.14]. The magazine offers an anniversary subscription, saving up to 40% on 8 issues, including an additional digital update with the latest news and closing prices.
However, the booming topic of digital security remains a concern, as hackers are now attacking companies and institutions with AI [p.14]. As the IPO market continues to thrive, it's essential for investors to stay informed and make informed decisions.
- In light of the thriving IPO market, especially with tech companies, investing in the stock-market could prove profitable as a German company joins the Prime Standard, following a series of highly anticipated IPOs.
- As the global finance scene is primed for innovative companies, particularly those in the AI sector, potential investors may find interest in the upcoming IPOs, as they aim to stay informed and make strategic decisions in the investing landscape.
