Market Insights Financial Corporate Finance

Initial Public Offerings - Asia

Asia

The transaction value in the Initial Public Offerings market is projected to reach €89.14bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 1.27% resulting in a projected total amount of €90.27bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €83.79m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (€58,730.00m in 2024).

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Initial Public Offerings market in Asia is experiencing a significant uptrend in recent years, showcasing a dynamic and evolving landscape.

Customer preferences: Investors in Asia are increasingly looking for opportunities to diversify their portfolios and seek higher returns. This shift in preference towards investing in IPOs is driven by the potential for substantial capital gains in a relatively short period. Additionally, the growing middle class in many Asian countries is fueling demand for investment options beyond traditional avenues.

Trends in the market: In Japan, a trend towards tech companies going public is emerging, reflecting the country's push towards innovation and digital transformation. Companies in sectors such as e-commerce, fintech, and biotech are capturing investor interest, indicating a shift towards a knowledge-based economy. This trend is reshaping the IPO landscape in Japan and attracting both domestic and international investors.

Local special circumstances: China, being one of the largest IPO markets in Asia, is witnessing a surge in listings by companies from emerging industries like electric vehicles and renewable energy. The government's focus on promoting sustainable development and technological advancements is driving companies in these sectors to go public. Moreover, regulatory changes aimed at streamlining the IPO process are making it easier for companies to list on the stock exchanges.

Underlying macroeconomic factors: South Korea's IPO market is influenced by the country's strong technology sector, with companies in areas such as semiconductor manufacturing and artificial intelligence leading the way. The government's support for innovation and R&D investments is creating a conducive environment for tech companies to debut on the stock market. Additionally, favorable economic conditions and low-interest rates are encouraging companies to tap into the capital markets for expansion and growth opportunities.

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.