IPOs in Germany
- IPOs strengthen companies’ financing options
- A stock market listing can increase public visibility
- Capital market developments in 2025 and 2026 reflect the political and geopolitical situation
Currently, an estimated 400 companies in Germany are listed on the regulated market. Including the open market, the total comes to around 800 companies. Given the size of the German economy, this figure appears comparatively low. More problematic is the fact that, despite efforts by European and German lawmakers to make the capital market more attractive, the number of companies on the capital market seems to be declining compared with previous years and past decades. Not least, this trend is reflected in the fact that only three IPOs were recorded in 2025.
The following looks at current capital market developments with regard to IPOs, as well as the key factors that can promote an IPO or stand in its way.
I. Targets of the IPO
With an IPO, issuers generally pursue the target of strengthening their financing options by raising fresh liquidity on the stock exchange. In addition, an IPO typically leads to increased publicity and can therefore strengthen the company’s public profile—both within the industry and among the general public. Finally, a stock market listing also makes it easier to sell an investment and thus structure an exit.
Initial Public Offering
If a company decides to place shares for the first time on the regulated market (the stock exchange) or on the open market and thus offer them for public purchase, this is referred to as an IPO (English: Initial Public Offering, IPO). The initial trading of shares on the organised, i.e. public, market is called the “primary market”, whereas trading in shares—also newly issued, e.g. as a result of a capital increase—of companies that are already listed is referred to as the “secondary market”.
II. Status quo of the German capital market with regard to IPOs
Contrary to what the stagnation in listed companies in Germany might suggest, more and more people in Germany are investing in shares. According to the German Share Institute, around two million more people in Germany invested in shares in 2025 than in the previous year. This means that about one in six Germans held shares.
In particular against the backdrop of the ongoing low-interest-rate environment and the economic uncertainties of recent years—especially the pension crisis prevailing in Germany—more and more private individuals are turning to shares and ETFs. ETF savings plans, in particular, are growing in popularity, as they are considered a low-cost, long-term way to build wealth and are becoming increasingly important for retirement provision.
This raises the question of why, to date, only comparatively few companies have dared to go public, even though access to fresh capital there seems easier than ever.
In 2025, only three IPOs were recorded, making 2025 likely the weakest IPO year of this decade. At the same time, the issue volume fell to €1.19 billion, the second-lowest value of this decade.
The largest German IPO in 2025 was successfully completed by Ottobock SE & Co. KGaA on 9 October 2025 on the Frankfurt Stock Exchange. The shares were issued at €66 each, generating issue proceeds of around €808 million and valuing the company at approximately €4.2 billion.
So what speaks against going public?
III. Challenges for capital market issuers
The advantage of the stock market spotlight also has its downsides, as a listing is associated with compliance with stricter regulation.
With an IPO, issuing companies are subject to significantly stricter regulatory oversight and bureaucratic challenges due to more extensive compliance requirements. This includes, for example, establishing capital market law transparency by complying with the provisions of the EU Market Abuse Regulation (MAR), which, for instance, requires the publication of inside information and imposes strict fines for non-compliance.
In addition, on the regulated market there is an obligation to prepare consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). The IFRS requirements for preparing annual reports are far stricter and more extensive than the requirements of the nationally applicable German Commercial Code (HGB).
Finally, an IPO is also associated with economic uncertainties. Listed companies can determine the value of the company on a daily basis based on their market capitalisation. Such a permanent valuation can exert enormous pressure on business conduct. This is particularly true given that capital market developments are also influenced by external factors such as political conditions or general market trends. The resulting price fluctuations are generally outside the control of the respective company.
IV. Opportunities of an IPO
However, an IPO also offers many advantages. In addition to the simplified access to debt capital already described and the easier exit from an investment through the sale of shares via the stock exchange, the strong influence of external factors mentioned above—such as market trends, political developments or, where applicable, media attention on social networks—can have positive, growth-promoting effects. Especially in such phases, companies can achieve a high volume as part of capital measures. This is clearly evident in certain sectors, such as the defence industry in 2026.
Stock exchange segments
In stock exchange operations, a distinction is made between the regulated market, which is governed by public law, and the open market, which is governed by private law. Within the regulated market, Germany’s most important exchange—the Frankfurt Stock Exchange—further differentiates between Prime Standard and General Standard.
V. Impact of external capital market developments in 2026
Political developments such as the prevailing retirement provision issue and the current political debate associated with it on funded private capital-based retirement provision, geopolitical tensions and trade policy uncertainties play a role not only in private investments, but also in the decision to go public.
German lawmakers are also making efforts to respond to economic developments and make investments more attractive. For this purpose, for example, the Location Promotion Act was passed, parts of which came into force on 10 February 2026 (see Location Promotion Act: Strengthening the Capital Market | RÖDL).
Likewise, on 27 March 2026 the Bundestag passed the Retirement Provision Act to create a retirement provision account. This is intended to create incentives for citizens to invest in shares, funds and Exchange Traded Funds (ETFs) and to save for retirement—supported by tax incentives and including the self-employed as well as support for low-income earners.
The significant influence of external factors—such as geopolitical tensions—on the decision to go public is also reflected in the fact that, in 2026, two out of three issuing companies can be attributed to the defence industry, and with KDNS a third defence company is expected to join the list:
1. Gabler Group AG
On 9 March 2026, Gabler Group AG, a Lübeck-based submarine supplier, was listed in the Scale stock exchange segment of the Frankfurt Stock Exchange, achieving a volume of approx. €133 million. Scale is a so-called SME growth market, the segment for small and medium-sized companies.
2. VINCORION SE
VINCORION SE, as a developer and manufacturer of mission-critical energy and mechatronics solutions for defence platforms and advanced aircraft systems, can also be attributed to the defence industry segment. VINCORION SE’s IPO took place on the regulated market in the Prime Standard on 20 March 2026 and generated proceeds of around €345 million.
3. KDNS
With KDNS, a German-French tank manufacturer, the IPO of another defence company is planned for 2026.
Outlook and conclusion
For companies, an IPO is a major decision and an important capital market law instrument for corporate financing and the associated growth opportunities. Capital market developments in 2025 and 2026 reflect the connection to the political and geopolitical situation. In this respect, the IPOs still expected in 2026 remain of great interest.
If you would like insights into a company’s path to going public, feel free to listen to the report by Mr Uwe Bögershausen, who, as CFO, has accompanied three companies on their way to the trading floor, in our newly released podcast—Capital Market Logbook, a collaboration between RÖDL and Quirin Privatbank;
Capital Market Logbook – Podcast episodes | RÖDL
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