Market Insights Financial Corporate Finance

Initial Public Offerings - Israel

Israel

The transaction value in the Initial Public Offerings market is projected to reach €0.44bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 43.18% resulting in a projected total amount of €0.63bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €31.49m 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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Analyst Opinion

The Initial Public Offerings market in Israel has been witnessing a notable surge in activity recently.

Customer preferences: Investors in Israel have shown a growing interest in IPOs, seeking opportunities to invest in promising companies at an early stage. This trend is driven by the desire to capitalize on potential high returns and be part of the growth story of innovative startups.

Trends in the market: One of the key trends in the Israeli IPO market is the increasing number of tech companies going public. Israel has gained a reputation as a hub for technological innovation, attracting both domestic and international investors looking to tap into this sector. The tech-focused IPOs have been met with enthusiasm, reflecting the market's confidence in the future prospects of these companies.

Local special circumstances: Israel's unique ecosystem of startups and venture capital plays a significant role in shaping the IPO market. The country is known for its strong entrepreneurial spirit and government support for innovation, creating a conducive environment for companies to grow and eventually go public. Additionally, the close collaboration between academia, research institutions, and industry fosters a culture of innovation, leading to a steady pipeline of IPO-ready companies.

Underlying macroeconomic factors: The stability of the Israeli economy and its strong performance in various sectors provide a solid foundation for the IPO market's growth. Favorable regulatory frameworks and supportive government policies further encourage companies to consider going public. Additionally, the presence of experienced investment banks and advisors in Israel helps facilitate the IPO process, boosting confidence among both issuers and investors.

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.