Market Insights Financial Corporate Finance

Initial Public Offerings - Europe

Europe

The transaction value in the Initial Public Offerings market is projected to reach €16.08bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -11.38% resulting in a projected total amount of €14.25bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €54.45m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (€58,120.00m in 2024).

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Analyst Opinion

The bedrock of the Initial Public Offering (IPO) market is formed by the amplified emphasis on sustainability, coupled with stringent risk management practices and swift integration of digital technologies. These strategic orientations aren't merely trends; they’re the pillars behind the market's success. Adapting to evolving global policies, monitoring geopolitical shifts, and adeptly managing currency risks all contribute to creating an environment where the number and scale of successful IPOs flourish. This dynamic equilibrium ensures that both the quantity and magnitude of IPO deals reach new heights.

Trends on the market:

Sustainability and ESG Focus: The IPO market is experiencing a notable surge in companies emphasizing sustainability and ESG (Environmental, Social, and Governance) factors. Investors increasingly seek out firms with robust sustainability practices, driving IPOs with strong ESG credentials.
Volatility and Risk Management: Given the uncertainties stemming from geopolitical events and economic fluctuations, companies and investors are focusing on comprehensive risk management strategies to ensure successful public offerings.
Digitization and Technology Adoption: Digitization and technology adoption continue to reshape the IPO landscape. Firms leveraging advanced platforms, blockchain applications, and data-driven analytics are better positioned to streamline the IPO process and enhance market reception.

Underlying Indicators:

Global Policies: Global policies wield substantial influence over the IPO market. Regulatory shifts, tax reforms, and trade agreements impact the ease and structure of IPOs. Staying attuned to evolving policies is crucial for companies seeking to go public.
Geopolitical Events: Geopolitical events remain a significant factor affecting IPO dynamics. Shifts in trade dynamics, political instability, and regional conflicts can introduce unforeseen risks. A nuanced understanding of geopolitical factors is vital for successful IPO execution.
Exchange Rates: Exchange rate dynamics continue to be a pivotal consideration for companies going public in international markets. Fluctuations in currency valuations can impact valuation and investor interest. Implementing effective currency risk management strategies is essential for mitigating potential adverse effects on IPO outcomes.

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.