Is the United States still the global leader in the IPO market? Yes, but that could be changing. The latest data from KCSA Strategic Communications—which surveyed 50 securities attorneys—shows that the U.S. share is declining.
Keep in mind that these 50 attorneys advised on 75 percent of major U.S. exchange listings last year, according to AltAssets. Seventy-one percent of respondents believe that U.S. IPO share is slipping and will continue on this trajectory in 2011. Tighter regulations and competition from other regions are cited as the drivers. Look to China, KCSA Strategic Communications says, to be a strong player this year.
Even with the U.S. losing some ground, 77 percent of the securities attorneys surveyed forecast a stronger IPO market this year, with 81 percent adding that the Dodd-Frank bill won’t have an effect on the number of listings.