BDO United States

Chicago, IL – According to a new study by BDO, one of the nation’s leading accounting and consulting organizations, capital markets executives at leading investment banks believe foreign businesses will play a bigger role in the U.S. initial public offering (IPO) market in 2010.  More than half (52%) of the bankers predict that foreign businesses will represent an increased percentage of IPOs on U.S. exchanges in 2010,  compared to just over a quarter (28%) who see it remaining stable and a fifth (20%) who anticipate a decrease.  Asia was seen as the most likely source of these foreign-based IPOs.

"Clearly, the capital markets community expects foreign-based businesses to play a larger role in terms of offerings on U.S. exchanges in 2010,” said Lee Graul, a Partner in the BDO Capital Markets Practice.  “Asia, the world’s fastest growing region, is specifically seen as the greatest source for this IPO activity."

These are just a few of the findings of The 2010 BDO IPO Outlook survey which examined the opinions of 100 capital markets executives at leading investment banks regarding the market for initial public offerings in the United States in the coming year.   The survey was conducted in December 2009.

Other major findings of The BDO IPO Outlook Survey:

• Asia Rules IPOs.  When asked what foreign region is likely to spawn the most U.S. IPOs in 2010, almost three-quarters (73%) of bankers cite Asia.  Central and South America (11%) finish a distant second, followed by Europe (9%).
• U.S. Versus the World.  Forty-four percent of capital markets executives believe that U.S. IPOs will represent an increased percentage of total global IPO proceeds in 2010, while 30 percent expect the U.S. share of IPO proceeds to stay about the same.  One quarter (25%) of the bankers think the percentage will decrease. 
• Deterrents to a U.S. IPO.  Of those who believe that the percentage of global IPO proceeds being generated by U.S. exchanges will shrink, increased federal regulation (42%) and the high cost of raising capital in the U.S. (38%) are viewed as having the greatest impact on deterring businesses from conducting their offerings in the U.S. 
• Foreign Exchange.  In terms of IPOs taking place on foreign exchanges, Asia was the most popular region of the investment bankers.  More than a third (36%) anticipate that the Hong Kong exchange will be the most popular for foreign IPOs in 2010, while a quarter (27%) cite the Shanghai exchange.  London (16%) finished third.

The BDO IPO Outlook Survey is a national telephone survey conducted by Market Measurement, Inc., an independent market research consulting firm, whose executive interviewers spoke directly to capital markets executives, using a telephone survey conducted within a scientifically-developed, pure random sample of the nation's leading investment banks.

BDO has been a valued business advisor to businesses making a public securities offering.  The firm works with a wide variety of clients, ranging from multinational Fortune 500 corporations to more entrepreneurial businesses, on a myriad of accounting, tax and other financial issues.

About BDO

BDO is the brand name for BDO Seidman, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals.  The firm serves clients through 37 offices and more than 400 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multi-national clients through a global network of 1,138 offices in 115 countries. 

BDO Seidman, LLP, a limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.com.

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