Market Insights Financial Corporate Finance

Initial Public Offerings - Lithuania

Lithuania

The transaction value in the Initial Public Offerings market is projected to reach US$66.52m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -38.89% resulting in a projected total amount of US$40.65m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$33.26m 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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Currency

Analyst Opinion

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

Customer preferences: Investors in Lithuania are increasingly looking for opportunities to diversify their portfolios and seek higher returns. The appeal of investing in IPOs lies in the potential for significant capital gains over the long term, which aligns with the risk appetite of many investors in the country.

Trends in the market: One prominent trend in the Lithuanian IPO market is the emergence of technology and innovation-driven companies going public. These companies are capitalizing on the growing demand for digital solutions and are attracting investors who see the potential for substantial growth in these sectors. Additionally, there is a noticeable trend of smaller companies opting for IPOs as a means to raise capital for expansion and development.

Local special circumstances: Lithuania's relatively small market size and the presence of a close-knit business community contribute to a sense of familiarity and trust among investors and issuers. This environment can facilitate smoother IPO processes and foster stronger relationships between companies and investors. Additionally, the government's support for entrepreneurship and initiatives to promote the capital market further boost confidence in the IPO landscape.

Underlying macroeconomic factors: The stable economic growth and favorable business environment in Lithuania are conducive to the development of the IPO market. Investors are attracted to the country's sound regulatory framework, which provides transparency and investor protection. Moreover, the increasing integration of Lithuania into the European Union market enhances access to a broader investor base and promotes cross-border investment opportunities.

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.