Market Insights Financial Corporate Finance

Initial Public Offerings - Zambia

Zambia

The transaction value in the Initial Public Offerings market is projected to reach US$243.90m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -1.03% resulting in a projected total amount of US$241.40m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$90.94m 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 Zambia is showing promising signs of development and growth.

Customer preferences: Investors in Zambia are increasingly looking for investment opportunities that offer potential high returns. This has led to a growing interest in Initial Public Offerings (IPOs) as they provide a chance to invest in companies at an early stage and benefit from their future success.

Trends in the market: One noticeable trend in the Zambian IPO market is the increasing number of companies choosing to go public. This trend is driven by the desire of local businesses to raise capital for expansion and growth. Moreover, the positive performance of recent IPOs has instilled confidence in both investors and companies, further fueling the market's growth.

Local special circumstances: Zambia's economy is diversifying beyond traditional sectors like mining and agriculture, leading to the emergence of new industries and companies seeking capital for development. This diversification has created opportunities for businesses in sectors such as technology, renewable energy, and infrastructure to tap into the IPO market.

Underlying macroeconomic factors: The stable economic environment in Zambia, coupled with government initiatives to promote capital markets and entrepreneurship, has created a favorable ecosystem for IPOs. Additionally, the increasing access to financial services and investment education has empowered more Zambians to participate in the stock market, driving demand for IPOs.

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.