The Telekom share was issued in 1996. A major marketing campaign followed. The further development was marked by ups and downs with a price crash.
- The IPO of Telekom shares took place on 18.11.1996
- For the first edition, Deutsche Telekom started a major advertising campaign with Manfred Krug
- 2001 saw the first price fall
Bonn - Until the 1990s, share transactions were investments for business people and companies. Private investors were rarely involved in DAX- managed companies. With the IPO of Deutsche Telekom on 18.11.1996 there was the first change for retail investors. Telekom aggressively advertised the T-share in a large-scale advertising campaign with Manfred Krug and with the new Magenta branding . She was also able to win stock market guru André Kostolany as an advocate for the share.
Deutsche Telekom was able to achieve great success with this campaign. When it was issued, the T-Share was oversubscribed five times. Deutsche Telekom shares have been issued a total of three times, which were formerly traded under WKN: 555750 and today under ISIN: DE0005557508 . The share was launched in several countries and indices. The share is listed on the Eurostoxx50 and is also traded on the New York Stock Exchange.
With the recommendation for a crash
The telecom share was able to achieve high profits in the first few years after the IPO . With an issue price of DM 28.50, it reached a price of DM 33 on the day of issue. Two further IPOs followed in 1999 and 2000. In 2000, the Federal Republic of Germany sold another 200 million T-shares at a price of 66.50 each Euro. The telecom shares was then promoted as a safe investment and pension provision. Even the otherwise very critical Kostolany was convinced of the success of the T-Share . Today around 14.6 percent of the shareholders are private small investors. 17.4 percent of the securities are deposited with the KfW Bank, another 14.3 percent is held by the federal government in its own deposit. More than half of the shares (53.7 percent) are held by institutional investors. From 2001, however, the company's market value fell rapidly. Various wrong decisions by the top management led to high revenue losses for Telekom. This resulted in a fall in the price of the T-share , which in between led to a price of EUR 10 per share. It reached its lowest point in 2009 at a price of 7.38 euros. In some cases, the dividend had to be waived. In 2001, a dividend of 2 cents per share was paid out in May .
Course development in the 2010s
With a restructuring of the portfolio and the development of new markets, particularly in the area of fiber optic network expansion, Telekom was able to significantly increase its sales and EBITDA . The T-Share thus recovered . However, the price development is still subject to significant fluctuations. For 2019, Deutsche Telekom has announced that it will distribute 60 cents per share in dividends after sales rose by 6 percent compared to the previous year. However, the share price after the Corona crash in April 2020 at a price below 15 euros far below the output values of the second and third initial public offering of Deutsche Telekom . Old company decisions from the years 2000 to 2002 still have a negative effect on the stock market value . However, the result and the stock market valuation are experiencing an upswing through the investment and expansion of the 5G network. Overall, the T-Share Magenta has been one of the most valuable stocks in the DAX since 2014 at the latest acted.
Lawsuits against the further IPO
Some private investors filed lawsuits against the other IPOs in 1999 and 2000 , because they mentioned inaccuracies in the stock market prospectuses and feared impending price losses due to the shares in circulation. In the first case, the Frankfurt Higher Regional Court found that there was no claim for damages. However, this decision was overturned by the Federal Court of Justice in 2014 and returned to the Frankfurt Higher Regional Court for a new decision. The procedure is still open in 2020.
