Market Insights Financial Corporate Finance

Initial Public Offerings - New Zealand

New Zealand

The transaction value in the Initial Public Offerings market is projected to reach US$476.80m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -9.40% resulting in a projected total amount of US$432.00m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$157.90m 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 New Zealand has been experiencing a significant surge in activity recently.

Customer preferences: Investors in New Zealand are increasingly showing interest in IPOs of companies that are focused on sustainable and environmentally friendly practices. This trend aligns with the global shift towards ESG (Environmental, Social, and Governance) investing, where investors are looking for opportunities that not only offer financial returns but also contribute to a more sustainable future.

Trends in the market: One notable trend in the New Zealand IPO market is the rise of tech companies going public. As the technology sector continues to expand globally, New Zealand is seeing a growing number of tech startups choosing to list on the stock exchange to raise capital for further growth and expansion. This trend reflects the increasing demand for innovative technology solutions both locally and internationally.

Local special circumstances: New Zealand's relatively small market size and limited number of listed companies create a unique environment for IPOs. Companies seeking to go public in New Zealand often face less competition compared to larger markets, which can be advantageous in terms of gaining investor attention and support. Additionally, the country's stable political environment and strong regulatory framework provide a level of investor confidence that is attractive to companies considering an IPO.

Underlying macroeconomic factors: The overall economic stability and resilience of New Zealand's economy play a significant role in the development of the IPO market. Favorable economic conditions, such as low inflation and unemployment rates, contribute to a positive investment climate that encourages companies to consider going public. Additionally, government initiatives to support entrepreneurship and innovation further stimulate IPO activity by creating a conducive ecosystem for business growth and development.

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.