Exclusive First German IPO of 2016: A Biotech Firm

Germany’s first initial public offering of 2016 will come from a biotech firm – the first in the industry to list domestically in a decade. The biotech firm Brain announced its plans on Tuesday. The company hopes to earn capital in the double-digit millions from the offering on Frankfurt’s stock exchange, which will take place on February 9. A subscription period for private investors will take place from January 21 to February 3. The German biotech industry has long shied away from capital markets. The last major public offering domestically was Munich-based cancer specialist Wilex about a decade ago. The reluctance was blamed on risk-averse German investors that had bad experiences with biotechs at the turn of the millenium. Companies including diagonistics firm Curetis instead listed on Euronext last year. Heidelberg-based cancer specialist Affirmed chose Nasdaq in the United States in 2014. Brain is one of the smaller IPOs expected in Germany this year. By contrast, billions are expected to be generated by the offerings of Deutsche Bank subsidiary Postbank, as well as the plans by utility firms E.ON and RWE to spin off major portions of their businesses. One startup expected to finally list this year, after a number of false starts in 2015, is the Rocket Internet-launched food delivery company Hello Fresh. Martin Steinbach, head of IPO research at consultancy EY, expects up to 15 initial public offerings in Germany this year.