Include a foundation maker of wind turbines from Roermond (Sif Group), an operator of several hundreds of gyms in Europe (Basic-Fit) and a bottler of Coca-Cola (Coca-Cola European Partners) recently took hundreds of millions via the stock market in Amsterdam.
It is a motley collection of companies that has been made public in recent months. Jaap Koelewijn, professor of corporate finance at Nyenrode University, says that every business has specific reasons to go public.
So Philips sells lighting division because the company wants to specialize in medical equipment and brings the ASR state, like ABN Amro, to the fair as part of the state that have received financial institutions.
the owners of Basic-Fit Friday brought their company to the stock exchange. I3 investment company in 2013 bought a majority stake for 110 million euros. The company now has a market value of around 800 million euros.
Growing
“There are few companies that collect fresh money to grow” says Koelewijn. “These are relatively stable companies that go public. It is not that there is a Facebook-like emission.”
Unfortunately, says the professor. But it is in his good that there are new opportunities for investors to invest.
That there are currently many companies go public, mainly by chance. Wim Zwanenburg, investment strategist at Stroeve & amp; Lemberger, notes that particularly in the Netherlands are suddenly much IPOs. “In itself it is nice that recover what parties it is good that again regains some new life.”.
“There are few companies that raise fresh money to grow”
Jaap Koelewijn
Brexit
For companies that want to go public, the current environment is also very favorable. Shares are trading at a relatively high price. “You go to the stock market as the prices are higher,” stresses Koelewijn. Companies are forced to undertake an IPO for summer by a possible British exit from the European Union.
If the Brits choose to leave the European Union, a possible IPO may fall into the water. “You do not know what happens after June 23. London may function less well. As you can for 23, then you do that,” the professor says.
“It’s a little stuffy for impact of Brexit “said Zwanenburg. “That can be positive or negative. They will now collect and the mood on the stock market is quite positive.”
IPO attractive to owners if they can catch a high price, but it is also a nice bonus that the selling party receives cash for the shares. Furthermore, the extra attention that an IPO gives an added advantage
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Media attention
a company can often count on a lot of media attention in an IPO. A group quickly gets a public appearance. “It’s a publicity agent,” says Koelewijn. Companies are so “famous Dutch”. “I can imagine this actually counts with Basic-Fit, but less for ASR and Philips Lighting.”
Zwanenburg explains that money can be picked up with an IPO at once. And for the company itself, it may be advantageous. If ownership in one large batch is concentrated, will often direct control. “Through the exchange is the shareholders’ meeting officially in charge, but they are a bit more remote”
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“It’s a little stuffy for the impact of a Brexit”
Wim Zwanenburg
cheap
In contrast, that an IPO is not cheap. There should be hired lawyers, and investment bankers to support the IPO. Companies must also place ads, talking with investors and speak to the media. All this costs a company quickly 5 to 10 percent of the money raised by an IPO.
Another disadvantage is that a business is also faster in the news when it goes bad. “Tall trees catch much wind. Think of the adventure of Nina Brink. They have less pleasant memories of the IPO,” Koelewijn said.
“Now you know that investors have become more critical. They are themselves aware that the stock market poses risks. an investor will think faster, if I is sewn on one ear, then I will take action. “
Koelewijn warns of herd behavior among investors. “There are always told great stories. Do you as an investor aware of. And yet you see investors to the market run if the price is high and run down like stock prices.”
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