Many professionals in the financial community are expecting there to be a surge in the volume of U.S. initial public offerings (IPOs) this year. According to recent research conducted by BDO USA LLP, a public accounting and tax advisory firm, an overwhelming amount of investment bankers predict that the incoming Trump administration will have an overall positive impact on the IPO market. In fact, as much as one-fifth of the investment bankers surveyed by BDO are of the belief that there will be a substantial increase in the number of companies that go public in 2017. The BDO report explains that bankers are projecting a total of $28 billion will be raised this year in IPO transactions. (For related reading, see: Tech IPOs Will Surge in 2017, Says Banker.)
IPO Market Revival
The expectations for a revived IPO market come just after investment bankers experienced a very slow year. According to a recent article in Barron’s, 2016 was “the worst year for proceeds from initial public offerings since 2003.” The Wall Street Journal reported that only 105 companies went public last year. That figure is down from 170 in 2015, and 275 in 2014.
The Journal explained that the decline in IPOs seen in 2016 was partially due to the sell-off seen at the beginning of that year, political uncertainty caused by the U.S. presidential election and the United Kingdom’s referendum to leave the European Union. Investment bankers are optimistic that Trump’s planned regulatory reform policies will encourage companies to list on Wall Street. (For more, see also: Unicorns: How a New IPO Plans to Beat Baidu, Alibaba.)
There are a number of IPOs that are anticipated to occur sometime this year. Snap, Inc. is probably one of the most highly anticipated companies to go public in 2017. The company has already announced its plan to start its roadshow very soon. BlackStone Group LP (BX) is also reportedly preparing to take one of its portfolio companies, an apartment REIT by the name of Invitation Homes, public during the first half of the year. Other companies that might go public this year include oil and gas company Jagged Peak, who has already filed with the SEC, ride-hailing service provider Uber and Spanish-language media conglomerate Univision, who has been planning its IPO for quite some time now.