IPO market still expected to be strong in 2019 despite delay caused by government shutdown: BDO survey

The U.S. IPO market was closed during the recent government shutdown, but bankers are still confident that 2019 will be a strong year for deals. That's according to a new survey by BDO USA, which found 71% of capital market executives at leading investment banks believe IPO activity will increase, or at lest be flat, with 2018, the best year for deals since 2014. The survey was conducted in December when markets were already experiencing a correction, but bankers remained optimistic despite more than half of them expecting further corrections in 2019. "Economic signals are mixed, but there are compelling positives-employment figures are strong, market dips often lead to rallies, and major companies like Uber and Lyft appear to be moving forward with their IPO plans," said Lee Duran, partner in the Capital Markets practice of BDO USA. "One wild card is the government shutdown. With the SEC delays in completing reviews, Q1 results may lag, but long-term growth opportunities could still drive a comeback." The survey found 37% of bankers expect private equity portfolios to generate the most IPOs this year, followed by 35% who expect venture capital to lead the way. The Renaissance IPO ETF was up 0.7% Tuesday and has gained 20.5% in 2019 so far. The Renaissance International IPO ETF was up 0.4% and has gained 7.4% in 2019. The S&P 500 and the Dow Jones Industrial Average have gained about 9% in the year to date.

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