Investment bankers expect US IPO market to grow by 25% in 2010

Majority of investment bankers surveyed expect initial public offering market in the US to witness a substantial 25 per cent growth in 2010, says a study by consulting firm BDO Seidman.

According to the study by the US-based firm, capital market executives at leading investment banks are bullish on the US initial public offering (IPO) market for 2010.

"More than two-thirds (68 per cent) believe IPO activity will increase this year compared to 2009, with almost a quarter (24 per cent) describing the increase as substantial," the survey revealed.

Only five per cent of the survey participants expect a decrease in IPOs in 2010, while 27 per cent forecast activity as flat with 2009.

"Overall, bankers predict a 25 percent increase in the number of US IPOs in 2010. They expect these offerings to average just over $400 million in size," the survey said.

Among industries which are likely to experience a hike in initial offerings in 2010, investment bankers expect technology (83 per cent), energy (78 per cent), biotech (72 per cent) and healthcare (62 per cent) verticals to be the likely winners this year.

The 2010 BDO IPO Outlook survey examines the opinions of 100 capital markets executives at leading investment banks regarding IPOs in the US.