Deutsche Postbank Goes Public On The Frankfurt Stock Exchange - Initial Public Offering On Xetra

Deutsche Postbank successfully went public in the Prime Standard on the Frankfurt Stock Exchange (FWB) on Wednesday. Postbank was the first larger company to do an initial public offering (IPO) on the pan-European trading platform Xetra. The pricing of the shares was broadcast live on the websites of both Postbank (www.postbank.de) and Deutsche Börse (www.deutsche-boerse.com).

IPOs on Xetra offer companies numerous advantages. Investors, companies and lead managers can follow the price determination process in the open Xetra order book. Liquidity is bundled on Xetra from the outset and the price determination process can be broadcast live on the internet or on television.

“We welcome Postbank as a new issuer in the Prime Standard. This IPO is a signal for the German capital market”, said Rudolf Ferscha, member of the Executive Board of Deutsche Börse AG and chairman of the Executive Management of the Frankfurt Stock Exchange. “Through the world’s largest exchange network, Postbank and its investors will have access to one of the world’s most efficient capital markets and a broad international investor spectrum.”

Postbank’s shares were initially priced at €29. The banking consortium, led by Deutsche Bank and Morgan Stanley as “Joint Global Co-ordinators”, comprised a total of 19 German and foreign banks. Postbank itself assumed the role of “Retail Co-ordinator” within the consortium.

According its own statements, and on the basis of its customer base of around 11.5 million and total assets of €132.6 billion, Postbank is the largest private customer bank in Germany. Postbank has more than 9,000 branches, giving it the most substantial network of branches boasted by any single financial institution in Germany. Around 800 Postbank centers employing over 2,000 customer advisors form the hub of the network.

Issuers can choose between two clearly defined segments for the admission of their shares to the Frankfurt Stock Exchange - the Prime Standard and the General Standard. Companies listed in the Prime Standard have to meet international transparency requirements. This segment is tailored to the needs of companies that wish to attract global investors. Statutory transparency requirements apply in the General Standard. This segment is suited to companies that primarily target domestic investors and prefer a more cost efficient listing. There are currently around 360 companies listed in the Prime Standard and around 490 in the General Standard.