Sources: Deutsche Börse contacts investment banks for possible listing of ISS Stoxx

Deutsche Börse Group AG, the operator of the Frankfurt Stock Exchange, has asked investment banks for presentations for a potential initial public offering (IPO) of its analytics and governance data unit ISS Stoxx, sources cited by Bloomberg say.

Deutsche Börse, which owns a majority stake of 80% in ISS Stoxx, is also considering the option of buying General Atlantic's 20% stake in the entity, according to the sources. According to them, discussions are ongoing and details of a possible listing could change.

A Deutsche Börse representative said the exchange operator had not yet made a decision on ISS Stoxx, and a General Atlantic official declined to comment.

Deutsche Börse said in 2023 that it would create a path for General Atlantic to eventually exit the investment. Last year, Deutsche Börse's CFO Gregor Pottmeyer said that the stock exchange operator could decide to list ISS Stoxx or buy back its 20% stake from General Atlantic.

According to marketsmedia.com, Deutsche Börse CEO Stephan Leithner said at the stock exchange operator's annual press conference on February 12 that General Atlantic had always been a temporary partner in ISS Stoxx. She said: "Our cooperation has been very good and constructive, but nevertheless, after the successful integration of ISS and Stoxx, we have to pave the way for a possible exit of General Atlantic from the shareholder base." At the time, Stephan Leithner said that Deutsche Börse could acquire General Atlantic's shares or list ISS Stoxx and is preparing for both options in the coming months.

In the event of an IPO, Deutsche Börse would continue to hold a majority stake and fully consolidate ISS Stoxx.

ISS Stoxx provides governance data and analysis, including recommendations for investors on how they should vote on shareholder proposals, as well as on other topics such as the election of board members. It also provides benchmark and customized indices on corporate governance, sustainability, cyber risks and fund information research. The company has more than 3,400 employees in 19 countries.

Deutsche Börse acquired a majority stake in International Shareholder Services (ISS) in 2021. It later combined the ISS business with Qontigo, an index compiler.