Market Insights Financial Corporate Finance

Initial Public Offerings - Papua New Guinea

Papua New Guinea

The transaction value in the Initial Public Offerings market is projected to reach US$126.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -1.19% resulting in a projected total amount of US$124.50m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$65.72m 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 Papua New Guinea is witnessing a gradual but steady development.Customer preferences in Papua New Guinea are shifting towards investment opportunities that offer long-term growth potential and stability.

Investors are increasingly looking for avenues to diversify their portfolios and maximize returns, leading to a growing interest in IPOs as a means to invest in promising local companies.Trends in the market indicate a rise in the number of local businesses opting to go public through IPOs. This trend is driven by the need for capital infusion to support expansion plans, improve infrastructure, and enhance competitiveness in both domestic and international markets.

As more companies recognize the benefits of accessing public capital, the IPO market in Papua New Guinea is expected to continue its upward trajectory.Local special circumstances, such as limited access to traditional financing options like bank loans, have also contributed to the growth of the IPO market in Papua New Guinea. For many businesses, especially small and medium enterprises, going public provides a viable alternative to raise funds for growth and development.

Additionally, the supportive regulatory environment and government initiatives aimed at promoting capital market activities have further encouraged companies to consider IPOs as a strategic financing option.Underlying macroeconomic factors, including stable economic growth, increasing foreign direct investment, and a growing middle class with disposable income, have created a conducive environment for the development of the IPO market in Papua New Guinea. These factors not only attract local companies to the stock exchange but also draw interest from foreign investors looking to capitalize on the country's expanding economy and emerging 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.