Market Insights Financial Corporate Finance

Initial Public Offerings - Laos

Laos

The transaction value in the Initial Public Offerings market is projected to reach US$93.21m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -0.71% resulting in a projected total amount of US$92.55m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$41.20m 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 Laos is witnessing an upward trend in recent years.

Customer preferences: Investors in Laos are showing a growing interest in IPOs as a means to diversify their investment portfolios and capitalize on potential returns. The appeal of investing in IPOs lies in the opportunity to acquire shares of promising companies at an early stage and benefit from their future growth.

Trends in the market: One notable trend in the Laos IPO market is the increasing number of companies choosing to go public to raise capital for expansion and development. This trend is driven by the need for funding to support business growth and seize new opportunities in a competitive market environment. Additionally, the rise of entrepreneurial ventures and startups in Laos is contributing to the expansion of the IPO market, as these companies seek avenues to raise funds for scaling up their operations.

Local special circumstances: Laos, as a developing economy, presents a unique set of circumstances that influence the IPO market. The government's focus on economic diversification and attracting foreign investment has created a conducive environment for companies to consider going public. Moreover, the evolving regulatory framework and efforts to enhance transparency and corporate governance practices are instilling confidence in both local and international investors, thereby fueling the growth of the IPO market.

Underlying macroeconomic factors: The macroeconomic stability and steady economic growth in Laos are playing a significant role in driving the development of the IPO market. With a favorable business climate and increasing investor confidence, companies are finding the right conditions to launch their IPOs successfully. Furthermore, the government's initiatives to promote capital market development and support the growth of the private sector are bolstering the attractiveness of the IPO market for businesses seeking capital infusion.

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.