Market Insights Financial Corporate Finance

Initial Public Offerings - Africa

Africa

The Initial Public Offerings market market in Africa is projected to reach a transaction value of US$8.51bn in 2024.
This represents an annual growth rate (CAGR 2024-[yeartoday]) of NaN%, resulting in a total projected amount of US$8.51bn by 2024.
The average transaction value in the Initial Public Offerings market market in Africa is estimated to be US$74.08m in 2024.
In a global comparison, it is noteworthy that China is expected to have the highest transaction value in the Initial Public Offerings market market, reaching US$77,620.00m in 2024.
Africa's corporate finance market is experiencing a surge in Initial Public Offerings, with Nigeria leading the way.

Market

Region

Region comparison

Currency

Analyst Opinion

The Initial Public Offerings market in Africa is showing promising signs of development.

Customer preferences: Investors in Africa are increasingly showing interest in IPOs as a means to diversify their investment portfolios and gain access to high-growth potential companies. They are attracted to the opportunity to invest in local businesses that have the potential to expand regionally or even globally.

Trends in the market: In Nigeria, the largest economy in Africa, there has been a notable increase in IPO activities driven by the privatization of state-owned enterprises and the listing of successful startups. Investors are eager to capitalize on the country's economic potential and the growing number of tech companies going public.

Local special circumstances: South Africa, with its well-established financial markets, is experiencing a shift towards more tech-focused IPOs. This trend is fueled by the country's growing tech industry and the increasing demand for digital solutions across various sectors. Additionally, the regulatory environment in South Africa is becoming more conducive to IPOs, attracting both local and foreign investors.

Underlying macroeconomic factors: Across Africa, the improving macroeconomic stability and regulatory reforms are creating a more favorable environment for IPOs. Countries like Kenya and Ghana are implementing measures to enhance transparency and investor protection, boosting confidence in the IPO market. As a result, more companies are considering going public to raise capital for expansion and innovation.

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.