Stock markets are in turmoil, volatility indices have rocketed and the Dow Jones has seen its biggest ever single-day losses. Why then, would you choose now to launch Germany’s biggest IPO in decades?
That’s a question that engineering giant Siemens must have been asking itself in the past few days as it prepares to float its healthcare unit Healthineers. But the firm’s answer has been simple: carry on regardless.
The IPO will be announced in the next few days and completed by Easter, financial sources said. It will raise up to a reported €7 billion ($8.6 billion), which would make it the second biggest IPO since Deutsche Telekom went public at the end of 1996, pumping more than €10 billion into government coffers.
Siemens CEO Joe Kaeser is evidently unperturbed by the global slide in share prices that saw the so-called fear barometers, the volatility indices VIX in the US and VDAX in Germany, reach their highest levels in years. Daily stock market losses in New York reached extreme levels of up to 4.6 percent.