Market Insights Financial Corporate Finance

Initial Public Offerings - Eastern Africa

Eastern Africa

The transaction value in the Initial Public Offerings market is projected to reach US$4.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -1.91% resulting in a projected total amount of US$4.61bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$145.70m 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

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Region comparison

Currency

Analyst Opinion

Over the past few years, the Initial Public Offerings market in Eastern Africa has been showing promising signs of growth and development.Customer preferences in the region indicate a growing interest in investing in local businesses and startups through IPOs.

Investors are increasingly looking for opportunities to support and benefit from the growth of companies within their own communities, driving the demand for IPOs in Eastern Africa.Trends in the market show a shift towards tech companies and renewable energy firms going public in countries like Kenya and Ethiopia. These sectors are attracting significant investor interest due to their potential for high growth and sustainability, aligning with global trends towards innovation and environmental consciousness.

Local special circumstances, such as government policies and regulatory frameworks, play a crucial role in shaping the IPO market in Eastern Africa. Countries like Tanzania and Uganda have been implementing reforms to attract more companies to go public, creating a conducive environment for IPO activity in the region.Underlying macroeconomic factors, including GDP growth, foreign investment inflows, and political stability, also influence the development of the IPO market in Eastern Africa.

As the region experiences economic growth and stability, more companies are considering going public to raise capital and expand their operations, contributing to the overall growth of the IPO market.

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.