Sixty per cent of Canadian executives surveyed expect the Canadian IPO market to increase in the next 6 to 12 months, with one-third expecting it to remain the same, according to a KPMG survey released Tuesday.

Overall, respondents are optimistic that the Canadian economy will experience growth in the next 12 months, with 89% of private companies and 82% of bankers/lawyers expecting moderate growth.

Eighty-six per cent of respondents expect their company to grow in the next 12 months and indicate this will have a positive effect on their plans to go public. Eighteen per cent of respondents say they plan to go public in the next two years, with another 15% indicating they do not have current plans to go public, but it is being actively considered.

“We are very pleased to see such optimism returning to Canadian private companies,” says Rob Brouwer, Canadian managing partner, markets, KPMG LLP. “

The executives planning to go public indicated the following reasons for their decision:

• access to capital, 78%;
• shareholder liquidity, 60%;
• part of long-term growth strategy, 60%;
• increased employee motivation and retention, 28%; and
• higher visibility, 23%.

Respondents were generally bullish about the prospects for growth in the economy and a strengthening IPO market. Furthermore, M&A activity is expected to strengthen with 81% expecting moderate to significant increases, and 63% expecting to see moderate to significant increases in private equity investments.

The market for IPOs is expected to open for some industries more than others. When investment bankers and lawyers were asked what industries they expected to experience the most IPO activity in the next 12 months, 63% said mining, 61% said oil and gas, 52% said biotechnology and pharmaceuticals, 49% said energy services, and 40% said power and utilities.

The KPMG survey was conducted across Canada, with 47% of respondents’ company headquarters located in Ontario, 25% located in British Columbia, 20% in Alberta, and 6% in Quebec.

IE