MONDAY MARKETS MAIL 2021 - A NEW RECORD YEAR FOR IPOS? - KATHREIN.AT - Kathrein Privatbank
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KATHREIN.AT
MONDAY
MARKETS
MAIL
Key topics at a glance.
2021 - A NEW RECORD YEAR FOR IPOS?
Kathrein statement
2020 was the shortest bear market in stock market history to date. A rapid recovery followed, which
initially seemed as unlikely as the pandemic itself. The optimistic mood of investors provides a good
environment for companies to think about going public. But what actually is a so-called IPO (eng.
term for initial public o ering) and is there an impact on the stock markets?
The stock exchange acts as a hub between providers of capital (the investors) and recipients of
capital (the companies). For companies, this means the opportunity to equip themselves with more
equity (by issuing shares) or to nance major projects and growth strategies by issuing bonds. While
shares are equity securities and the holder/buyer thus becomes a co-owner of the company (he
pro ts from the increase in value of the company), bonds are to be seen as receivables (a debt
security for the company, which pays out interest to its creditors).
Planned IPOs as an indicator of a good stock year?
Last year, big names such as Airbnb, Palantir, Snow ake, DoorDash and Unity already appeared on
the stock exchange oor. In total, there were 494 IPOs, which heralded a new record year in 2020
with a total volume of $174 billion (approx. 147 billion euros). 2021 promises to surpass 2020: To date,
some 374 planned IPOs have been announced for this year. With the current top 10 planned IPOs in
2021, the current total is $306 billion (approximately 259 billion euros) by companies such as Bumble
($6 mill.), Instacart ($30 mill.), Robinhood Markets ($20 mill. USD), Nextdoor (5 mill.USD), Stripe (100
mill.USD), Roblox (30 mill.USD), Coinbase (75 mill.USD), UiPath (35 mill.USD), ThoughtSpot (2
mill.USD), Ascensus (3 mill.USD) owing into the market. The valuations are quite ambitious, but the
364 other planned IPOs are not even included in the calculation.
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German economy starts con dently into GameStop with sales decline in the
spring fourth quarter
• Ifo business climate index rose from 92.7 • In the three months to the end of January,
points in February to 96.6 points turnover fell by 3 % year-on-year to 2.1 billion
• Despite rising infection gures, the German dollars
economy starts the spring with con dence • After a record high of over 483 dollars in
• GDP is expected to grow by only 3.7 % this January, the shares recently cost just under
year and not by 4.2 % as expected in 182 dollars
December • Revenues in the past nancial year fell by
around 21 % to 5.1 billion dollars
Munich (APA) - Business sentiment in Germany
brightened surprisingly in March despite the New York (APA) - Video game retailer
third wave of corona. The Ifo business climate GameStop, known for spectacular stock
index rose to 96.6 points from 92.7 in February, turbulence, continues to su er from business
its highest level since June 2019, the economic losses. In the three months to the end of
research institute said on Friday on its survey of January, sales fell by three percent year-on-
9,000 managers. year to 2.1 billion dollars (1.8 billion euros), the
company announced the previous evening
"Despite rising infection gures, the German after the US stock exchange closed. However,
economy is starting the spring with con dence," pro ts rose from 21.0 million to 80.5 million
Ifo president Clemens Fuest said. Managers dollars, not least thanks to lower expenses. In
assessed the business outlook for the coming addition, online sales increased by 175 percent.
six months and their situation more favourably
than recently. Nevertheless, market expectations were
disappointed. GameStop had made headlines
Only this week, the Ifo Institute lowered its in January due to a speculative battle on the
growth forecast for the German economy stock exchange. The company has actually
because of continuing lockdowns for the been in crisis for some time, but driven by small
hospitality industry, for example. The gross investors organised on the Internet, the shares
domestic product (GDP) is expected to grow by had staged a breathtaking rally. This in turn
only 3.7 per cent this year and not by 4.2 per caused huge losses for hedge funds that were
cent as expected in December. "The Corona betting on a drop in the share price. In January,
crisis is dragging on and postponing the the share price reached a record high of over
expected strong upswing," said Ifo economic 483 dollars, but the high was soon over. Most
head Timo Wollmershäuser. For 2022, the recently, the share price was just under 182
institute raised its forecast from 2.5 to 3.2 per dollars.
cent. In 2020, the German economy had
slumped by 4.9 per cent. In view of the extreme price uctuations and
the high level of attention caused by the stock
Helaba economist Urlich Wortberg spoke of a market turbulence, the nancial report serves
recovery that was to be expected "after the as a kind of reality check of the - soberly
preliminary purchasing managers' indices viewed - relatively dull daily business. In the
showed unexpectedly signi cant increases. All whole of the past nancial year, GameStop's
in all, the gures suggest a friendly economic revenues fell by around 21 percent to 5.1 billion
outlook, but expectations should not be set too dollars. The bottom line was a loss of 215.3
high. million dollars. The shop business with video
games is not considered a big growth driver
anyway and su ers additionally in the
pandemic.ORDER BOOM: INDUSTRY GIVES VERY
STRONG SIGNS OF LIFE
• A veritable boom in orders from home and abroad triggered a strong expansion in production
• The rise in the index to 63.4 points - after 58.3 points in February - signalled a strong acceleration
of the upswing in domestic industry
• Still increasing problems due to worsening supply bottlenecks in combination with sharply rising
costs for input materials and raw materials
Vienna (APA) - The recovery of Austrian industry has once again strengthened. A veritable order
boom from Austria and abroad triggered a strong expansion of production. Job creation accelerated
signi cantly again, Bank Austria said on Monday, commenting on its Purchasing Managers' Index,
which in March climbed to its second-highest level since the survey began in 1998. Supply
bottlenecks and cost increases are causing problems for industry.
The rise of the index to 63.4 points - after 58.3 points in February - signals a strong acceleration of
the upswing in domestic industry, regardless of the existing restrictions to contain the Corona
pandemic, said chief economist Stefan Bruckbauer. The recovery is based on the renewed
improvement in international conditions for Austria's strongly export-oriented industry. Throughout
Europe, industry is on an upward trend, and in the Eurozone the indicator even reached a new all-
time high in March.
The only downer is the increasing problems caused by the worsening of delivery bottlenecks in
combination with the strongly rising costs for input materials and raw materials. The extension of
delivery times was the most massive since the beginning of the survey and the increase in costs the
strongest in ten years, Bruckbauer said. All sub-components contributed to the increase in the indexin March - the strongest impulse came from the improved order situation, explained economist
Walter Pudschedl in a press release.
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