Siemens confirmed late last month its intention to float its medical business Healthineers on the Frankfurt Stock Exchange. The listing, planned for 1H 2018, could value the subsidiary at up to €40 billion—which would make it the largest public offering in Germany since Deutsche Telekom's in 1996—and will reportedly see its parent company sell 20% to 25% of the business.
The engineering giant chose the German financial capital instead of London in part due to the uncertainty created by the UK's decision to leave the European Union. "Frankfurt is one of the world's leading trading centres for securities, and its importance will continue to increase due to Brexit," said Michael Sen, the chairman of the Siemens Healthineers supervisory board
A listing in Frankfurt would underscore an emerging uptick in the number of flotations on the German IPO market, which got off to a slow start this year. However, a flurry of listings during the summer—led by Rocket Internet-backed Delivery Hero's €1 billion flotation—has seen the amount of completed IPOs
rise back to 2015's highs, per the PitchBook Platform.
Completed IPOs in Germany
Meanwhile in the UK, a number of multimillion-pound listings are being pulled for exactly the reason Siemens cited in choosing Frankfurt over London: market uncertainty. Arqiva, the mobile and TV mast operator, announced its intention to float a portion of the company for £1.5 billion in October, but shelved its plans just two weeks later and is reportedly waiting until conditions in the UK improve.
In another example, ready-meals supplier Bakkavor perhaps illustrated the prevailing nervousness best when it announced, cancelled and then re-announced its £1 billion flotation—all within a four-week window. On top of this, several companies on the verge of an IPO
have been taken private instead.