Market Insights Financial Corporate Finance

Initial Public Offerings - Madagascar

Madagascar

The transaction value in the Initial Public Offerings market is projected to reach US$0.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -2.78% resulting in a projected total amount of US$0.35bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$182.00m 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 Madagascar has been steadily growing and evolving in recent years.Customer preferences in the IPO market in Madagascar are influenced by a variety of factors.

Investors in the country tend to show interest in IPOs that are associated with industries showing potential for significant growth, such as technology, telecommunications, and renewable energy. Additionally, there is a preference for IPOs of companies with a strong track record of profitability and stability, as this is perceived as a lower-risk investment opportunity.Trends in the IPO market in Madagascar indicate a shift towards increased participation from local retail investors.

This trend can be attributed to a growing middle class with disposable income looking for investment opportunities to diversify their portfolios. Furthermore, the government's initiatives to promote the local capital market have also contributed to this trend, making IPOs more accessible to a wider range of investors.Local special circumstances play a significant role in shaping the IPO market in Madagascar.

The country's unique regulatory environment, characterized by specific listing requirements and disclosure regulations, influences the types of companies that choose to go public. Additionally, the political stability of the country and its economic growth prospects impact investor confidence in the IPO market.Underlying macroeconomic factors such as GDP growth, inflation rates, and foreign direct investment also play a crucial role in the development of the IPO market in Madagascar.

A stable macroeconomic environment with consistent economic growth attracts both domestic and foreign investors to participate in IPOs. Moreover, government policies aimed at promoting capital market development and investor protection are essential for fostering a conducive environment for IPO activity in the country.

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.