The IPO may largely be a thing of the past, but some business leaders are still holding out hope.
In a new poll from Deloitte, a survey of 3,000 business leaders found that just over 40 percent believed the number of IPOs will increase “substantially” or “modestly” in the second half of 2016.
About 26 percent expect the current pace to stay roughly the same, while only 7.8 percent think it might get worse. The rest had no opinion.
These execs said they expected health sciences and tech to lead whatever IPO charge happens.
And while going public always carries challenges, the most crucial issue facing any company wanting to go public is timing the market correctly. Indeed, as we noted this spring, market volatility will likely leave the 22 companies that filed for IPOs to raise $1.5 billion.
The actual performance of the IPO markets in the U.S. has been terrible so far this year. In the first quarter, the eight IPOs were the worst since 2009. The second quarter saw the number of tech IPOs increase to four from two in the first quarter.
Certainly the IPO window hasn’t completely shut. Renaissance Capital, for instance, is closely watching 12 tech companies that it thinks could be likely IPO candidates in the next year.
Still, the revival of IPOs looks like a tough dream to sell. With unicorns continuing to multiply, at some point many of them are going to have to hope that a deep-pocketed suitor comes along if they want to see some kind of exit.