The recent mid-2015 review by Deloitte reports rising IPO activity has led to growing work-flow for Australian banking & finance lawyers. They predict this upsurge will continue to rise until sometime early next year.
The review found 30 IPOs were initiated in in the first-half of this year, compared to the 22 recorded in the same period last year.
These results throw more weight behind global law firm Baker & McKenzie’s, recent predictions regarding the future of IPO activity growth worldwide. The firm forecasts across the globe IPO and M&A activity will speed up until about 2017 to 2018.
Stuart Byrne partner at Clayton Utz, a Brisbane commercial law firm, in charge of the firm’s national equity capital markets group reports that the good news doesn’t end at increased IPO launches.
“As companies get larger and more sophisticated and the Australian tech market matures, we're actually seeing a need for pre-IPO debt work in that space and follow-on facilities, and therefore more banking work is coming out in to the listed environment,” he pointed out.
Alex Schlosser, a banking partner at Clayton Utz noted he has also seen an upsurge in businesses trying new things and becoming innovative in their debt requirements, as well as, their usage of capital.
"We're seeing quite a few companies, especially tech companies, that may have had a single bank relationship, or that were not banked at all are now going to the syndicated loan market,” he said.
Mr Schlosser went on to note that there had been a move “both in terms of the quantum and the complexity of the financing in those entities… as they grow, that expansionary debt capability comes in to play and they tap in to that market a bit more.”
Partner Stuart Byrne believes banking and finance lawyers will continue to enjoy a rising work-flow, forecasting that demand for their services will remain strong.
“I predict that we're going to see a continuing strength and demand for those banking services, particularly as our tech market deepens and ASX becomes more widely known as a fantastic place to list tech companies.”