Sixty percent of Canadian executives surveyed expect the Canadian IPO market to increase in the next 6 to 12 months, with one-third expecting it to remain the same, according to a newly-released KPMG survey.

Overall, respondents are optimistic that the Canadian economy will experience growth in the next 12 months, with 89 percent of private companies and 82 percent of bankers and lawyers expecting moderate growth.

Eighty-six percent of respondents expect their company to grow in the next 12 months and indicate this will have a positive effect on their plans to go public. Eighteen percent of respondents say they plan to go public in the next two years, with another 15 percent indicating they do not have current plans to go public, but it is being actively considered. 

 

The executives planning to go public indicated the following reasons for their decision:

-Access to capital (78 percent)
-Shareholder liquidity (60 percent)
-Part of long-term growth strategy (60 percent)
-Increased employee motivation and retention (28 percent)
-Higher visibility (23 percent)

Respondents were generally bullish about the prospects for growth in the economy and a strengthening IPO market. Furthermore, M&A activity is expected to strengthen with 81 percent expecting moderate to significant increases, and 63 percent expecting to see moderate to significant increases in private equity investments.

The market for IPOs is expected to open for some industries more than others. When investment bankers and lawyers were asked what industries they expected to experience the most IPO activity in the next 12 months, 63 percent said mining, 61 percent said oil and gas, 52 percent said biotechnology and pharmaceuticals, 49 percent said energy services, and 40 percent said power and utilities.

The KPMG survey was conducted across Canada, with 47 percent of respondents' company headquarters located in Ontario, 25 percent located in British Columbia, 20 percent in Alberta, and 6 percent in Quebec.