Market Insights Financial Corporate Finance

Initial Public Offerings - Brazil

Brazil

The transaction value in the Initial Public Offerings market is projected to reach €0.08bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 175.00% resulting in a projected total amount of €0.22bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €10.64m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (€58,730.00m in 2024).

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Región

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Moneda

Analyst Opinion

The Initial Public Offerings market in Brazil has been experiencing a significant growth in recent years.

Customer preferences: Investors in Brazil are increasingly interested in IPOs as a way to diversify their portfolios and gain exposure to new and potentially lucrative opportunities. With a growing middle class and an expanding economy, there is a strong appetite for investing in promising companies that are going public.

Trends in the market: One notable trend in the Brazilian IPO market is the rise of tech companies going public. As the country embraces digital transformation and innovation, tech startups are attracting substantial investor interest. Additionally, there is a trend towards sustainability and ESG-focused companies entering the market, reflecting a global shift towards more socially responsible investing practices.

Local special circumstances: Brazil's unique regulatory environment and market conditions play a significant role in shaping the IPO landscape. The country's regulatory framework for IPOs has been evolving to attract more companies to go public, offering incentives and streamlining the process. Moreover, the local stock exchange, B3, has been actively promoting IPOs and providing support to companies throughout the listing process.

Underlying macroeconomic factors: The macroeconomic factors in Brazil, such as low interest rates and economic reforms, have created a favorable environment for companies considering going public. The country's stable economic growth and increasing investor confidence have contributed to the positive momentum in the IPO market. Additionally, the government's efforts to reduce red tape and improve the business climate have made it easier for companies to access capital markets through IPOs.

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.