Market Insights Financial Corporate Finance

Initial Public Offerings - Azerbaijan

Azerbaijan

The transaction value in the Initial Public Offerings market is projected to reach US$137.10m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -2.04% resulting in a projected total amount of US$134.30m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$56.22m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in Azerbaijan is experiencing a notable uptick in activity.

Customer preferences: Investors in Azerbaijan have shown a growing interest in IPOs as a means of diversifying their investment portfolios and capitalizing on potential high returns. The appeal of investing in newly listed companies, especially in emerging sectors, has attracted a significant number of retail and institutional investors.

Trends in the market: One prominent trend in the Azerbaijani IPO market is the increasing number of tech startups and companies from the renewable energy sector going public. These sectors are seen as promising growth areas, aligning with global trends towards innovation and sustainability. Moreover, the government's efforts to promote entrepreneurship and innovation have created a conducive environment for tech companies to flourish and seek public funding through IPOs.

Local special circumstances: Azerbaijan's strategic location as a gateway between Europe and Asia has positioned it as an attractive destination for foreign investors looking to tap into the country's market potential. The government's initiatives to improve regulatory frameworks and transparency in the capital markets have also bolstered investor confidence in the IPO market. Additionally, the presence of state-owned enterprises in the privatization process has added diversity to the IPO landscape in Azerbaijan.

Underlying macroeconomic factors: The overall economic stability and steady GDP growth in Azerbaijan have provided a favorable backdrop for companies considering going public. The government's focus on economic diversification away from traditional sectors like oil and gas has encouraged companies in non-oil industries to explore IPO opportunities as a means of raising capital for expansion and development. Additionally, the increasing integration of Azerbaijan into global markets through trade agreements and partnerships has enhanced the country's attractiveness for potential IPO candidates.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.