Market Insights Financial Corporate Finance

Initial Public Offerings - Sri Lanka

Sri Lanka

The transaction value in the Initial Public Offerings market is projected to reach US$10.41m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.82% resulting in a projected total amount of US$11.64m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$2.35m 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 Sri Lanka has been witnessing interesting developments recently.

Customer preferences: Investors in Sri Lanka are showing a growing interest in Initial Public Offerings due to the potential for high returns in a relatively short period. This trend is in line with global investor behavior, where IPOs are often seen as an attractive investment opportunity.

Trends in the market: One noticeable trend in the Sri Lankan IPO market is the increasing number of companies choosing to go public to raise capital for expansion and growth. This trend reflects the confidence that businesses have in the country's economic prospects and their willingness to tap into the capital market for funding.

Local special circumstances: Sri Lanka's market dynamics, including a stable regulatory environment and an emerging middle class with disposable income, are contributing to the growth of the IPO market. Additionally, the government's initiatives to promote the stock market and attract foreign investment are creating a favorable environment for companies considering going public.

Underlying macroeconomic factors: The overall economic stability and steady GDP growth in Sri Lanka are providing a solid foundation for the IPO market to thrive. With a growing economy and increasing investor confidence, companies are more inclined to launch IPOs to capitalize on the favorable market conditions and investor appetite for new 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.