Market Insights Financial Corporate Finance

Initial Public Offerings - Kenya

Kenya

The transaction value in Kenya's Initial Public Offerings market (IPO) market is projected to reach US$0.41bn in 2024.
This indicates a projected total amount of US$0.41bn by 2024, with an expected annual growth rate (CAGR 2024-[yeartoday]) of NaN%.
In 2024, the average transaction value in Kenya's IPO market is estimated to be US$133.20m.
When compared globally, it is worth noting that China is expected to have the highest transaction value in the IPO market, reaching US$77,620.00m in 2024.
Kenya's IPO market is experiencing a surge in activity, fueled by a growing economy and increased investor confidence.

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Analyst Opinion

The Initial Public Offerings market in Kenya is experiencing a significant surge in activity, with a notable increase in the number of companies opting to go public.

Customer preferences: Investors in Kenya are increasingly looking for diverse investment opportunities beyond traditional options. The appeal of investing in IPOs lies in the potential for high returns and the opportunity to support local businesses in their growth journey.

Trends in the market: One prominent trend in the Kenyan IPO market is the growing interest from small and medium-sized enterprises (SMEs) to raise capital through public offerings. These companies view IPOs as a strategic move to access funds for expansion, improve their market visibility, and enhance credibility among stakeholders.

Local special circumstances: Kenya's vibrant entrepreneurial ecosystem, coupled with the government's initiatives to promote capital markets, has created a conducive environment for companies to consider going public. The Nairobi Securities Exchange provides a platform for companies to list and raise capital, further fueling the IPO activity in the country.

Underlying macroeconomic factors: The stable economic growth and increasing investor confidence in Kenya are key drivers behind the flourishing IPO market. Favorable regulatory reforms and a growing middle class with disposable income have also contributed to the attractiveness of investing in IPOs. Additionally, the government's focus on infrastructure development and innovation has boosted the overall business environment, encouraging more companies to explore the option of going public.

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.