Initial Public Offerings - Saudi Arabia

The transaction value in the Initial Public Offerings market is projected to reach US$4.24bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -20.64% resulting in a projected total amount of US$3.36bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$155.50m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached China (US$63.33bn in 2024).

Definition:

The Initial Public Offerings (IPO) market entails a transition where private companies become publicly traded entities. In an IPO, a company offers its shares to the public for the first time, enabling it to raise substantial capital. This process involves regulatory compliance, detailed financial disclosures, and determining the offering price. Investment banks play a central role in the IPO market by acting as underwriters and advisors to the issuing company. They assist in the structure of the offering, marketing the shares to potential investors, and navigating the complexities of going public.

Structure:

The market contains the following KPIs: transaction value, number of transactions, and the average transaction size.

Additional information:

Only transactions that are valued above US$100,000 are considered in this analysis.

Deals valued over $100,000
At the Market Offerings
De Novo Offerings
Forward Sale Offerings
Re-IPOs

Private Equity Deals
Venture Capital Deals

The bedrock of the Initial Public Offering (IPO) market is formed by the amplified emphasis on sustainability, coupled with stringent risk management practices and swift integration of digital technologies. These strategic orientations aren't merely trends; they’re the pillars behind the market's success. Adapting to evolving global policies, monitoring geopolitical shifts, and adeptly managing currency risks all contribute to creating an environment where the number and scale of successful IPOs flourish. This dynamic equilibrium ensures that both the quantity and magnitude of IPO deals reach new heights.

Trends on the market:

Sustainability and ESG Focus: The IPO market is experiencing a notable surge in companies emphasizing sustainability and ESG (Environmental, Social, and Governance) factors. Investors increasingly seek out firms with robust sustainability practices, driving IPOs with strong ESG credentials.
Volatility and Risk Management: Given the uncertainties stemming from geopolitical events and economic fluctuations, companies and investors are focusing on comprehensive risk management strategies to ensure successful public offerings.
Digitization and Technology Adoption: Digitization and technology adoption continue to reshape the IPO landscape. Firms leveraging advanced platforms, blockchain applications, and data-driven analytics are better positioned to streamline the IPO process and enhance market reception.

Underlying Indicators:

Global Policies: Global policies wield substantial influence over the IPO market. Regulatory shifts, tax reforms, and trade agreements impact the ease and structure of IPOs. Staying attuned to evolving policies is crucial for companies seeking to go public.
Geopolitical Events: Geopolitical events remain a significant factor affecting IPO dynamics. Shifts in trade dynamics, political instability, and regional conflicts can introduce unforeseen risks. A nuanced understanding of geopolitical factors is vital for successful IPO execution.
Exchange Rates: Exchange rate dynamics continue to be a pivotal consideration for companies going public in international markets. Fluctuations in currency valuations can impact valuation and investor interest. Implementing effective currency risk management strategies is essential for mitigating potential adverse effects on IPO outcomes.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Investment banks provide important services for companies, governments, and other institutions, with the purpose of acting as a mediator between the parties included. Most of the largest investment banks globally, also known as “bulge bracket banks”, are full-service banks, providing a wider range of services to clients in addition to underwriting and advisory services, such as sales and trading, research, and asset management services. The investment bankers are compensated for their services through fees, which can take various forms depending on the agreement, but is usually made up by a cash fee paid when the deal has been completed, a fixed monthly fee, a success fee as a share of the deal value, or a combination of these fee types.

Mergers and acquisitions have become integral to corporate growth, with deal activity consistently showing robust numbers even amidst global economic uncertainty. Companies are increasingly looking beyond organic growth, seeking acquisitions or mergers to gain access to new markets, diversify their portfolios, achieve synergies, or enhance technological capabilities. The value of global M&A deals worldwide amounted to 2.5 trillion U.S. dollars in 2023, with the United States being the most dynamic market and accounting for more than half of the total. China's M&A activity, while tempered by regulatory scrutiny and geopolitical tensions, has grown significantly: Chinese firms have been targeting sectors such as technology and healthcare, both domestically and internationally, to support their economic growth. Emerging markets such as India and Brazil have also become attractive M&A destinations, particularly in sectors like consumer goods, technology, and energy.

An initial public offering, also known as an IPO or a stock market launch, is a pivotal step in the journey of a company. It refers to the debut of a company's stock on a stock exchange and allows external investors to buy shares in the company. Going public can yield high returns for the company itself and its investors, but it can also be a gamble. In fact, the equity returns of IPOs were twice as large as those from NASDAQ investments or even SPAC mergers in 2020, but returns were negative in 2021. Additionally, the share of companies that are profitable post-IPO has fallen in recent years.

IPO activity in the United States has seen dramatic fluctuations in recent years. The peak in 2021 set a record, with approximately 135 billion U.S. dollars raised due to a surge in tech companies and Special Purpose Acquisition Companies (SPACs) going public. However, this rapid growth was followed by a stark downturn in 2022 and 2023, which led countries like China and India to emerge as the leading IPO market, despite the U.S. being home to the largest stock exchanges worldwide in terms of market capitalization. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market are also the most popular exchanges for international companies, having the highest number of foreign firms listed.

Initial Public Offerings - Saudi Arabia

Transaction Value

Number of Transactions

Average Transaction Size

Analyst Opinion

Methodology

Financial

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Key Market Indicators

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Mergers and acquisitions (M&As) worldwide - statistics & facts

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IPOs globally - statistics & facts

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IPOs in the U.S. - statistics & facts

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Initial Public Offerings - Saudi Arabia

In-Scope

Out-Of-Scope

Corporate Finance

Related markets:

Initial Public Offerings: market data & analysis

Transaction Value

Number of Transactions

Average Transaction Size

Analyst Opinion

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Investment banking - statistics & facts

Explore more high-quality data on related topic

Mergers and acquisitions (M&As) worldwide - statistics & facts

Explore more high-quality data on related topic

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Explore more high-quality data on related topic

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