Market Insights Financial Corporate Finance

Initial Public Offerings - Peru

Peru

The transaction value in the Initial Public Offerings market is projected to reach US$0.48bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -4.17% resulting in a projected total amount of US$0.46bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$71.12m 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 Peru is experiencing a steady growth trajectory with increasing investor interest and market activity.

Customer preferences: Peruvian investors are showing a growing appetite for investing in IPOs as they seek opportunities for higher returns compared to traditional investment options. The younger demographic, in particular, is more inclined towards investing in IPOs, attracted by the potential for capital appreciation and diversification of their investment portfolios.

Trends in the market: One noticeable trend in the Peruvian IPO market is the rise of tech startups and companies from emerging industries going public. Investors are showing a keen interest in these innovative companies, hoping to capitalize on the growth potential of such sectors. Additionally, there is a trend towards more diverse offerings in terms of company size and industry, providing investors with a wider range of choices to invest in.

Local special circumstances: Peru's economic stability and regulatory environment are playing a crucial role in fostering the growth of the IPO market. The government's efforts to promote entrepreneurship and attract foreign investment are creating a conducive environment for companies to go public. Moreover, the increasing integration of Peru into the global economy is opening up new opportunities for companies to access international capital markets through IPOs.

Underlying macroeconomic factors: The overall economic growth and stability in Peru are bolstering investor confidence in the IPO market. As the economy continues to expand, companies are finding favorable conditions to go public and raise capital for their growth and expansion plans. Additionally, the low interest rate environment and ample liquidity in the market are encouraging investors to explore alternative investment avenues like IPOs.

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.