Market Insights Financial Corporate Finance

Initial Public Offerings - Southern Africa

Southern Africa

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 -8.33% resulting in a projected total amount of US$0.44bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$46.38m 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).

Market

Region

Region comparison

Currency

Analyst Opinion

The Initial Public Offerings market in Southern Africa reflects a dynamic environment with evolving trends and unique local circumstances.

Customer preferences: Investors in Southern Africa are increasingly showing interest in IPOs as a means to diversify their portfolios and gain exposure to high-growth potential companies. With a growing middle class and a desire for investment opportunities beyond traditional avenues, IPOs present an attractive option for investors looking to capitalize on the region's economic potential.

Trends in the market: In South Africa, the largest economy in the region, there has been a noticeable uptick in IPO activity, driven by companies seeking capital for expansion and strategic initiatives. The technology and fintech sectors have been particularly active, reflecting the growing digital transformation trends in the country. Additionally, there is a trend towards dual-listing, with companies opting to list on multiple exchanges to access a broader investor base.

Local special circumstances: Political stability and regulatory environment play a significant role in shaping the IPO market in Southern Africa. Countries with stable governments and investor-friendly policies tend to attract more IPOs, as companies seek certainty and transparency in the listing process. South Africa, for example, with its well-established financial markets and regulatory framework, remains a preferred destination for IPOs in the region.

Underlying macroeconomic factors: Economic growth, market liquidity, and investor confidence are key macroeconomic factors influencing the IPO market in Southern Africa. Countries experiencing robust economic growth and favorable market conditions are more likely to see an increase in IPO activity, as companies look to capitalize on the positive momentum. Additionally, investor confidence, driven by factors such as political stability and regulatory certainty, plays a crucial role in shaping the appetite for IPOs in the region.

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.