Market Insights Financial Corporate Finance

Initial Public Offerings - Ethiopia

Ethiopia

The transaction value in the Initial Public Offerings market is projected to reach US$1.61bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -3.11% resulting in a projected total amount of US$1.56bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$251.90m 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 Ethiopia is showing promising signs of development and growth.Customer preferences in the IPO market in Ethiopia are influenced by a growing interest in local businesses and industries.

Investors are increasingly looking for opportunities to support and benefit from the expansion of domestic companies through IPOs.Trends in the Ethiopian IPO market indicate a shift towards increased transparency and regulatory improvements. As the market matures, there is a growing emphasis on governance standards and investor protection, which is attracting more participants to the market.

Local special circumstances, such as the government's push for privatization and economic liberalization, are driving the growth of the IPO market in Ethiopia. The opening up of key sectors to private investment and the divestment of state-owned enterprises are creating new opportunities for companies to go public.Underlying macroeconomic factors, including stable economic growth, rising disposable incomes, and a young and growing population, are also contributing to the development of the IPO market in Ethiopia.

These factors create a favorable environment for companies seeking to raise capital through public offerings.

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.