Market Insights Financial Corporate Finance

Initial Public Offerings - Ghana

Ghana

The projected transaction value in the Initial Public Offerings market market in Ghana is estimated to reach US$0.25bn in 2024.
This projection indicates an annual growth rate of NaN%, resulting in a total amount of US$0.25bn by 2024.
In the same year, the average transaction value in the Initial Public Offerings market market is expected to amount to US$168.00m.
When compared globally, it is noteworthy that China is expected to have the highest transaction value, reaching US$77,620.00m in 2024.
Ghana's IPO market is witnessing a surge in activity as local businesses seek to raise capital for expansion and growth.

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Analyst Opinion

The Initial Public Offerings market in Ghana is experiencing a notable surge in activity, reflecting the growing interest of investors in the country's capital markets.

Customer preferences: Investors in Ghana are increasingly showing a preference for investing in local companies through IPOs, driven by a desire to support domestic businesses and participate in their growth potential. This preference for local investments is in line with global trends where investors are seeking more sustainable and socially responsible investment opportunities.

Trends in the market: One notable trend in the Ghanaian IPO market is the increasing number of small and medium-sized enterprises (SMEs) choosing to go public. These companies are attracted by the opportunity to raise capital for expansion and diversification, as well as to enhance their visibility and credibility in the market. This trend mirrors the global shift towards SME IPOs, which are seen as drivers of economic growth and innovation.

Local special circumstances: Ghana's IPO market is also influenced by local special circumstances, such as government initiatives to promote the growth of the capital markets. Policies aimed at improving market transparency, investor protection, and regulatory efficiency are creating a more conducive environment for companies to list on the stock exchange. Additionally, the increasing participation of local institutional investors is providing a stable source of demand for IPOs.

Underlying macroeconomic factors: The development of the IPO market in Ghana is further supported by positive macroeconomic factors, including steady economic growth, low inflation, and political stability. These factors enhance investor confidence and attract both domestic and foreign investors to participate in IPOs. The government's commitment to economic reforms and infrastructure development also contributes to the overall attractiveness of the Ghanaian capital markets.

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.