Market Insights Financial Corporate Finance

Initial Public Offerings - Western Africa

Western Africa

The transaction value in the Initial Public Offerings market is projected to reach US$4.63bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -3.89% resulting in a projected total amount of US$4.45bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$141.50m 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 Western Africa is experiencing a notable surge in activity recently.

Customer preferences: Investors in Western Africa are showing a growing interest in IPOs due to the potential for high returns and diversification of their investment portfolios. With a youthful population that is increasingly tech-savvy, there is a strong appetite for investing in innovative companies that are going public for the first time.

Trends in the market: Nigeria, the largest economy in Western Africa, is leading the IPO market in the region. The country's vibrant tech sector, coupled with a rising middle class, is attracting both local and foreign investors to participate in IPOs of promising tech startups. Additionally, the government's efforts to privatize state-owned enterprises are creating opportunities for IPOs in sectors like telecommunications and energy.

Local special circumstances: Ghana, another key market in Western Africa, is witnessing a trend of family-owned businesses going public to raise capital for expansion and succession planning. This shift is driven by the need for these businesses to access larger funding sources beyond traditional bank loans. As a result, the IPO market in Ghana is becoming more diverse, with companies from a variety of sectors tapping into public markets.

Underlying macroeconomic factors: The overall economic growth in Western Africa, driven by factors such as urbanization, infrastructure development, and increasing consumer spending, is creating a favorable environment for IPOs. As businesses seek to capitalize on the region's economic potential, the IPO market is expected to continue its growth trajectory. Additionally, regulatory reforms aimed at improving transparency and investor protection are boosting confidence in the IPO market across Western Africa.

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.