Market Insights Financial Corporate Finance

Initial Public Offerings - Luxembourg

Luxembourg

The transaction value in the Initial Public Offerings market is projected to reach US$1.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -9.38% resulting in a projected total amount of US$1.45bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$0.39bn 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

Luxembourg, known for its strong financial sector and stable economy, has been witnessing an interesting trend in its Initial Public Offerings (IPO) market.

Customer preferences: Investors in Luxembourg are showing a growing interest in IPOs, attracted by the potential for high returns and portfolio diversification. The demand for new investment opportunities is driving companies to consider going public to tap into this investor appetite.

Trends in the market: One noticeable trend in the Luxembourg IPO market is the increasing number of tech companies choosing to go public. This trend mirrors the global market shift towards technology and innovation-driven firms. These tech IPOs are often well-received by investors, reflecting the market's confidence in the sector's growth potential.

Local special circumstances: Luxembourg's status as a leading financial hub in Europe plays a significant role in shaping its IPO market. The presence of a sophisticated investor base, including institutional investors and high-net-worth individuals, provides a strong foundation for successful IPOs. Moreover, the country's favorable regulatory environment and tax incentives make it an attractive destination for companies looking to go public.

Underlying macroeconomic factors: The macroeconomic stability of Luxembourg, characterized by low inflation and unemployment rates, contributes to the favorable conditions for IPOs. Additionally, the country's strategic location in the heart of Europe and its strong ties to global markets enhance the visibility and attractiveness of Luxembourg as a venue for IPOs. Overall, the combination of economic stability, investor interest, and regulatory support is driving the development of the IPO market in Luxembourg.

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.