Market Insights Financial Corporate Finance

Initial Public Offerings - North America

North America

The Initial Public Offerings market market in North America is projected to reach a transaction value of US$69.14bn by 2024.
This represents an annual growth rate (CAGR 2024-[yeartoday]) of NaN%, resulting in a projected total amount of US$69.14bn by 2024.
The average transaction value in the North American Initial Public Offerings market market is estimated to be US$270.30m in 2024.
In comparison to other countries, 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.
In the North American market, Initial Public Offerings are experiencing a surge in tech companies going public, driven by the strong presence of innovative startups in the region.

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Analyst Opinion

The Initial Public Offerings market in North America is experiencing a surge in activity, driven by various factors influencing investor behavior and market dynamics.

Customer preferences: Investors in North America are showing a growing interest in tech companies, particularly those involved in innovative industries such as artificial intelligence, biotechnology, and renewable energy. This preference for high-growth potential companies is fueling the demand for IPOs in these sectors.

Trends in the market: In the United States, there is a noticeable trend of special purpose acquisition companies (SPACs) gaining popularity as an alternative route to going public. These blank-check companies offer a faster and less traditional way for businesses to enter the public market, attracting both investors and companies seeking capital.

Local special circumstances: Canada, on the other hand, is witnessing a rise in IPOs from the cannabis industry. With the legalization of recreational marijuana in Canada, cannabis companies are seizing the opportunity to go public and capitalize on the growing market demand. This sector-specific trend is unique to the Canadian market and reflects the local regulatory environment.

Underlying macroeconomic factors: The overall economic stability and low interest rates in North America are providing a favorable environment for companies to consider going public. With easy access to capital and a robust investor base, businesses are finding the IPO market attractive for raising funds for expansion and growth initiatives. Additionally, the strong performance of recent IPOs is instilling confidence in both investors and companies, further driving the market activity.

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.