Market Insights Financial Corporate Finance

Initial Public Offerings - Tanzania

Tanzania

The transaction value in the Initial Public Offerings market is projected to reach US$41.37m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -6.89% resulting in a projected total amount of US$38.52m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$20.69m 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 Tanzania is experiencing a notable uptick in activity, reflecting the growing interest in investment opportunities within the country.Customer preferences in Tanzania are shifting towards seeking investment opportunities with high growth potential, which has led to an increased demand for IPOs.

Investors are attracted to the prospect of investing in local companies that show promise for substantial returns in the future.Trends in the market indicate that Tanzanian companies are increasingly opting to go public through IPOs to raise capital for expansion and growth. This trend is driven by the need for additional funding to support business development initiatives and to capitalize on emerging market opportunities.

Local special circumstances, such as the government's focus on promoting economic growth and encouraging local entrepreneurship, have created a conducive environment for companies to consider going public. The regulatory framework for IPOs in Tanzania has also become more supportive, making it easier for companies to navigate the process of going public.Underlying macroeconomic factors, including stable economic growth, a growing middle class, and increasing foreign direct investment, have contributed to the development of the IPO market in Tanzania.

These factors have boosted investor confidence and created a favorable investment climate, driving the growth of the IPO market in the country.

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.