The market for initial public offerings has had a year it would rather forget as it tried to deal with global political uncertainty, but a new report estimates that a strong bounce-back in activity is expected in 2017.
"Although global IPO (initial public offering) activity in 2016 will likely lag behind 2015 levels, the outlook for 2017 is positive due to improving economic fundamentals, high valuations and lower volatility which will support IPO sentiment," a new report by audit firm EY said on Wednesday.
The company's quarterly EY Global IPO Trends report said a return to the record levels of activity in 2014 "may be a stretch," but expected activity next year to surpass 2015. It said that IPO activity in emerging markets continues to gather pace with options on alternative financing remaining limited.
China is also expected to see a higher levels of flotations as the country's market regulator looks to clear the pipeline by approving bigger deals now that equity markets have stabilized, according to EY.