Market Insights Financial Corporate Finance

Initial Public Offerings - Central America

Central America

The transaction value in the Initial Public Offerings market is projected to reach US$0.67bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -2.99% resulting in a projected total amount of US$0.65bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$36.27m 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).

Market

Region

Region comparison

Currency

Analyst Opinion

The Initial Public Offerings market in Central America is witnessing a steady growth trajectory driven by various factors.

Customer preferences: Investors in Central America are increasingly showing interest in IPOs, seeking opportunities for diversification and potential high returns in a region with a growing economy. They are looking for innovative and sustainable companies with strong growth prospects to invest in.

Trends in the market: In Costa Rica, there is a trend of technology companies going public to raise capital for expansion and development. This trend is fueled by the growing tech industry in the country and the increasing demand for digital solutions. Investors are keen on participating in the growth of these tech companies through IPOs.

Local special circumstances: In Panama, the government's initiatives to attract foreign investment and develop the financial sector are contributing to the growth of the IPO market. Companies in Panama are taking advantage of these favorable conditions to go public and access capital for business expansion. The strategic location of Panama as a hub for trade and commerce also plays a role in attracting investors to IPOs in the country.

Underlying macroeconomic factors: The stable economic conditions in Central America, coupled with the region's strategic position for trade and investment, are creating a conducive environment for IPOs. As the region continues to experience economic growth and political stability, more companies are considering going public to capitalize on the opportunities available in the market. Additionally, the favorable regulatory environment and supportive government policies are encouraging companies to tap into the capital markets through IPOs.

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.