Market Insights Financial Corporate Finance

Initial Public Offerings - Paraguay

Paraguay

The transaction value in the Initial Public Offerings market is projected to reach US$87.52m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -1.84% resulting in a projected total amount of US$85.91m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$23.64m 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 Paraguay is experiencing a notable surge in activity, reflecting the growing interest of investors and companies in the country's capital markets.Customer preferences in Paraguay are shifting towards investment opportunities that offer higher returns and long-term growth potential.

As a result, there is an increasing demand for IPOs as a way for investors to participate in the early stages of promising companies' growth trajectories.Trends in the Paraguayan IPO market indicate a diversification of sectors represented in the offerings. Traditionally dominated by industries such as agriculture and financial services, recent IPOs have seen a rise in technology and renewable energy companies going public.

This trend aligns with global market movements towards sustainable and innovative businesses.Local special circumstances, such as the government's efforts to promote economic diversification and attract foreign investment, are contributing to the development of the IPO market in Paraguay. Initiatives aimed at improving the business environment and fostering entrepreneurship are creating a more favorable ecosystem for companies considering going public.

Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a relatively young population with increasing purchasing power, are providing a solid foundation for the expansion of the IPO market in Paraguay. These factors create a conducive environment for companies to raise capital through public offerings and for investors to capitalize on the country's economic growth potential.

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.