Market Insights Financial Corporate Finance

Initial Public Offerings - Malawi

Malawi

The transaction value in the Initial Public Offerings market is projected to reach US$240.80m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -0.04% resulting in a projected total amount of US$240.70m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$0.47bn 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 Malawi is witnessing a steady development with increasing investor interest and participation.

Customer preferences: Investors in Malawi are showing a growing preference for investing in Initial Public Offerings as a means to diversify their portfolios and capitalize on potential returns. This trend aligns with global patterns where investors seek opportunities in emerging markets for higher growth potential.

Trends in the market: One notable trend in the Malawian IPO market is the rise of offerings from companies in the technology and renewable energy sectors. This reflects a shift towards sustainable and innovative businesses that are gaining traction both locally and internationally. Additionally, there is a noticeable increase in the number of local investors participating in IPOs, indicating a growing confidence in the domestic market.

Local special circumstances: Malawi's IPO market is also influenced by local special circumstances, such as the government's push for economic diversification and the promotion of local entrepreneurship. These factors contribute to the attractiveness of IPOs as a way for local companies to raise capital for expansion and development. Furthermore, the regulatory environment in Malawi is becoming more conducive to IPO activity, providing a supportive framework for companies looking to go public.

Underlying macroeconomic factors: The development of the IPO market in Malawi is underpinned by favorable macroeconomic conditions, including stable economic growth, low inflation rates, and increasing foreign direct investment. These factors create a conducive environment for companies to consider going public as a strategic move to access capital for growth opportunities. Additionally, the government's efforts to improve infrastructure and enhance business competitiveness further support the growth of the IPO market in Malawi.

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.