Market Insights Financial Corporate Finance

Initial Public Offerings - Hungary

Hungary

The transaction value in the Initial Public Offerings market is projected to reach US$140.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -4.36% resulting in a projected total amount of US$133.90m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$22.89m 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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Currency

Analyst Opinion

The Initial Public Offerings market in Hungary is experiencing a significant uptick in activity, reflecting a growing interest in investment opportunities within the country.

Customer preferences: Investors in Hungary are increasingly looking for diverse investment options beyond traditional asset classes. The appeal of IPOs lies in the potential for high returns and the opportunity to invest in promising local companies at an early stage.

Trends in the market: One notable trend in the Hungarian IPO market is the emergence of technology and fintech companies going public. These sectors are gaining traction among investors due to their innovative solutions and growth potential. Additionally, there is a trend towards privatization of state-owned enterprises, leading to more IPOs in sectors previously dominated by government entities.

Local special circumstances: Hungary's strategic location in Central Europe and its membership in the European Union make it an attractive destination for foreign investors looking to access the wider European market. The country's stable political environment and improving business climate further contribute to the appeal of investing in Hungarian IPOs.

Underlying macroeconomic factors: The overall economic growth and stability in Hungary play a crucial role in driving the IPO market. Favorable macroeconomic indicators, such as low inflation, increasing GDP, and rising disposable incomes, create a conducive environment for companies to go public. Moreover, supportive government policies and regulatory reforms aimed at boosting capital markets also enhance the attractiveness of IPOs in Hungary.

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.