Market Insights Financial Corporate Finance

Initial Public Offerings - Iceland

Iceland

The transaction value in the Initial Public Offerings market is projected to reach US$86.18m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -22.15% resulting in a projected total amount of US$67.09m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$32.71m 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 Iceland has been experiencing a notable uptick in activity in recent years.

Customer preferences: Investors in Iceland have shown a growing interest in IPOs as a means of diversifying their portfolios and seeking higher returns. With a limited number of companies going public in Iceland, investors are eager to capitalize on new opportunities in the market.

Trends in the market: One significant trend in the Icelandic IPO market is the increasing number of tech startups choosing to go public. These companies are attracting investors with their innovative solutions and high growth potential. Additionally, there is a trend towards sustainability-focused IPOs, reflecting the growing global emphasis on environmental responsibility.

Local special circumstances: Iceland's small market size and relatively isolated location present unique challenges and opportunities for IPOs. Companies going public in Iceland often face limited domestic investor interest, prompting them to look to international markets for funding. However, the tight-knit business community in Iceland can also work to the advantage of IPOs, as local connections and support can facilitate the process.

Underlying macroeconomic factors: The stability of Iceland's economy and its strong regulatory framework have contributed to the growth of the IPO market. Favorable government policies and a business-friendly environment have encouraged companies to consider going public as a viable option for raising capital. Additionally, Iceland's strategic location between Europe and North America positions it as an attractive investment destination for both regional and international investors.

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.