I-Bankers Mixed on IPO Outlook, Overwhelmingly Favor Romney For IPO Market

Those predicting an increase in IPOs were 33%, those who were expecting IPOs to be flat for the remainder of 2012 were 36% and those who see contraction came to 31%.

Banker sentiment suggests that there may be virtually no net change (0.2%), with the latter half of 2012 matching the first half in the number of U.S. IPOs.  The average IPO size is expected to be $221 million in size and this should come to over $43 billion in total IPO proceeds on U.S. exchanges in 2012.

The most common issue facing the markets is said to be global political and financial instability at 59% of respondent reports.  The uncertainty of the presidential election was cited as 20% of the pressure, and 9% put the risk of government spending cuts in there.

Some 72% of the capital markets community respondents believe that Mitt Romney would be better for the IPO markets than President Obama.  Obama got the vote by 15% of respondents while the ‘no preference’ camp was 12%. With Romney’s private equity background these results are likely not surprising at all.

JON C. OGG