Global float activity is expected to rise by just over 25 per cent in 2017, before surging onwards in the following years.
This year will see floats reach $167bn (£138bn), according to experts at law firm Baker McKenzie, up from $133bn in 2016.
Further floats are expected to see activity dramatically uptick, reaching $275bn in 2018 and 2019.
“Improved market sentiment and a number of countries looking to list state-owned companies to raise money, particularly in the CEE (Central and Eastern Europe), CIS (Commonwealth of Independent States), Middle East and Africa should lead to a more benign market environment in 2017 with a real pick up towards the second half of the year into 2018,” said Koen Vanhaerents, global head of capital markets at Baker McKenzie.
Vanhaerents added that the technology sector will likely be a key source of activity, with a mooted Initial Public Offering for teen social media platform Snapchat likely to lead the way.
By contrast, acquisition activity is likely to remain diminished after slowing last year.
The law firm predicted total M&A values would droop from $2.8trn in 2016 to $2.5trn this year, before slowly recovering.
Baker McKenzie’s global head of M&A Michael DeFranco said volatility in the US stock market, growing concerns about China's economic slowdown, and dropping oil and commodity prices caused dealmakers to become more cautious.
“We expect that environment of uncertainty to continue at least for the first quarter of this year,” DeFranco said.