At the end of November 2021, we ventured an outlook for the stock market year 2022. We also saw Austrian IPO targets already mentally on the stock market through our IPO joint venture with Rockets Investments, until, only 1 quarter later, things were to turn out quite differently…. See link of our “brutkasten” interview:
https://brutkasten.com/artikel/c4-rockets-ipo-kooperation
We will now refrain from making a new forecast on IPO sentiment for 2024. Nevertheless, we are wondering which global crises are likely to occur in greater numbers after the pandemic and the Ukraine/Middle East war. We are also convinced that the rapidly increasing and pent-up inflow of liquidity will be unleashed in a “price firework” from the global interest rate turnaround onwards. Shares on smaller capital markets such as Germany and Austria should also benefit from this. Interesting IPO valuations in succession should then also provide a good year and the basis for IPOs….. Although far too late, Europe is now entering a normalized interest rate environment. For various reasons, SMEs in particular will have to raise equity in 2024. However, the expected return on equity funds is over 30% p.a. Alternative mezzanine money already costs over 18% p.a., which is why an IPO with a capital increase is currently by far the cheapest growth capital. Institutional investors expect a return (capital appreciation + dividend) of less than 10% p.a. on their IPO investment. Crowd investors also receive around 8% p.a. in annual payments for equity surrogates for SMEs, see our Biogena transactions in 2023. As we expect the Fed to raise/reverse interest rates as early as Q2 2024, you should prepare for an IPO with C4/Rockets in good time, as good preparation takes several months. We would be happy to accompany your IPO and look forward to an orientation meeting.
Vienna, 27.12.2023
