Market Insights Financial Corporate Finance

Initial Public Offerings - South Korea

South Korea

The transaction value in the Initial Public Offerings market is projected to reach €4.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.14% resulting in a projected total amount of €4.89bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €45.14m 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 South Korea is experiencing a surge in activity, attracting both local and international investors.

Customer preferences: Investors in South Korea are increasingly drawn to IPOs due to the potential for high returns in a relatively short period. The appetite for new and innovative companies, especially in tech and biotech sectors, is driving interest in IPOs.

Trends in the market: One notable trend in the South Korean IPO market is the rise of tech companies going public. With the country being a hub for technological innovation, startups in areas such as e-commerce, fintech, and artificial intelligence are choosing to list on the stock exchange to raise capital for expansion. Additionally, the privatization of state-owned enterprises is also contributing to the uptick in IPOs.

Local special circumstances: South Korea's unique business culture, characterized by strong government support for entrepreneurship and innovation, is fostering a conducive environment for IPOs. The country's well-established infrastructure, skilled workforce, and robust legal framework provide a solid foundation for companies looking to go public.

Underlying macroeconomic factors: The South Korean economy's resilience and steady growth are bolstering confidence in the IPO market. Stable political conditions, favorable interest rates, and increasing foreign direct investment are creating a positive investment climate. Additionally, the government's initiatives to promote capital market development and attract foreign investors are further fueling the growth of the IPO market in South Korea.

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.