Deutsche Boerse removes Wirecard from DAX index

Friday 21 August 2020 12:47 CET | News

Deutsche Boerse has announced that Delivery Hero will replace insolvent Wirecard on Germany's blue-chip DAX index, after an accounting scandal that toppled the fintech company.

The move came after the German stock-exchange operator announced new rules requiring insolvent companies to be removed from the index. Wirecard's ejection from the DAX comes roughly two years after it first entered the index and follows weeks of controversy.

The German food-delivery company joined the DAX on August 17, 2020 after the market closed, Deutsche Boerse said. Based on the criteria for DAX membership, including market capitalisation and free float, the inclusion of Delivery Hero was widely expected, according to Market Watch. Delivery Hero raised its guidance for 2020 in late July 2020 after posting increasing revenue for its second quarter. In 2019, Delivery Hero booked EUR 1.46 billion in revenue and now targets revenue between EUR 2.6 billion and EUR 2.8 billion for 2020.

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Keywords: Germany, Wirecard scandal, accounting fraud, fintech, payments , index, DAX, Deutsche Boerse, Delivery Hero
Categories: Banking & Fintech
Countries: Germany
This article is part of category

Banking & Fintech