Exclusive-Deutsche Boerse, Euronext step up battle against IPO flight to US

Written by Charlie Kunchi

LONDON (Reuters) -major main stock exchange operators in Europe escalate to retain local public offers in the face of the American competition, with the challenge of marketing and researching the perception that the companies listed in New York brings higher reviews.

Exchanges in Europe and the United Kingdom have been subjected to drought of subscriptions over the past two years, and a number of local companies chose to float or transfer the initial lists to the United States for their deep capital gatherings and higher assessments.

Deutsche Boorese, which runs the Frankfurt Stock Exchange, warns of slow performance after virtual, higher costs and threats to litigation for companies that are included in the United States, according to a joint document with German companies and public subscription consultants in recent weeks, Reuters.

It found that about two -thirds of the companies listed in Europe, including Germany, rose on the first day of trading, while about half of the European companies that were included in the United States got their first appearance in the market. Over time, the performance of subscription subscriptions from the region was better in Europe compared to the United States.

Do not mention the evaluation data in the public subscription, but in its report it highlighted several examples of companies listed in the European that are trading peers of peers listed in the United States.

Euronext, who runs seven markets in cities including Amsterdam and Paris, is also planning to release a similar paper that challenges the belief that companies listed in the United States attract higher assessments than their European peers.

“We really see more competition, if you will, between Europe and the American market in terms of lists, not inside Europe,” Stefan Massin, head of the capital and companies in Deutsche Boeres, told Reuters.

Exchanges win fees from companies that include their platforms and brokers to trade securities, and are seen by policy makers to attract investment.

Divine markets

European officials are looking for ways to deepen capital markets on the continent because the depth and size of American markets represent a lot for those looking for the list.

The S& P500 index is 49.5 trillion dollars, approximately four times the Stoxx 600 in Europe, according to LSEG data based on closing prices on Monday.

European officials are also considering the new listing rules to improve access to financing.

The efforts made by Deutsche Boires and Eurnext to reduce the attractiveness of New York to European companies hesitating on the London Stock Exchange, which reached a “legendary” document in March, and wondering about the perception that the companies listed in the United States attract higher assessments than those in London.