Dealing with the "IPO Drought" - Two major European exchanges warn that there are risks for companies listing in the United States.

Facing competition from the United States, the two major operators of securities exchanges in Europe are stepping up their efforts in hopes of retaining companies for IPOs in their local markets. Their marketing and research teams are challenging the higher valuations often given to companies listed in New York. Over the past two years, European and British securities exchanges have been hit by an "IPO drought", with many local companies choosing to list in the United States or shifting their primary listings there, as the US offers a larger pool of funds and potentially higher valuations. A document from Deutsche Brse, which operates the Frankfurt Stock Exchange, warned that companies listed in the US may face post-IPO underperformance, rising costs, and litigation threats. A spokesperson for Euronext, which operates in cities like Amsterdam and Paris, stated that the company also plans to issue a similar document challenging the view that US-listed companies are valued higher than their European counterparts. Euronext operates seven markets across Europe.