Equity capital markets (ECM) lawyers are hoping for an increase in initial public offering (IPO) activity as the effects of the credit crunch spill over into the public markets, where IPOs could be seen as an increasingly attractive exit route.

Firms including Freshfields Bruckhaus Deringer, Herbert Smith, Linklaters and Travers Smith have all landed roles on IPOs in recent weeks despite a slow pickup after the summer and the collapse of high-profile floats such as Smartstream Technologies and Wagamama.

Freshfields' corporate partner Simon Witty and Linklaters' corporate finance partner John Lane are advising on the planned London Stock Exchange float of data centre operator Telecity Group, which is expected this month.

With debt more expensive, many firms are predicting that private equity sellers could consider an IPO exit rather than a sale. Last week it emerged that Apax is considering a £2bn float of clothing company Tommy Hilfiger with Skadden Arps Slate Meagher & Flom understood to have won the lead role for Apax.

Many of the deals that have managed to get away over the past month have taken place overseas.

These include the $1.7bn (£830m) Hong Kong float of Sino-Ocean Land Holdings, which saw Herbert Smith act for Goldman Sachs and Morgan Stanley as underwriter and Freshfields act for the issuer. Other deals include the Nordic listing of shipping operator Dockwise, advised by Clifford Chance and Linklaters. Linklaters and Freshfields also advised on one of the largest ever Spanish IPO earlier this month, the E4bn (£2.8bn) listing of Spanish bank La Caixa's investment arm.

Another key mandate saw CC and Linklaters this week confirm roles on an estimated $4bn (£1.94bn) float by port operator DP World on the Dubai International Financial Exchange. CC is advising the issuer, with corporate partner Iain Hunter leading the team alongside City-based US securities partner Michael Dakin. Linklaters capital markets partner Jason Manketo is leading a team for the underwriters.

However, many partners believe UK floats are set to pick up. Linklaters capital markets partner Stephen Edlmann said: "We are starting to hear private equity people suggesting dual-track processes, as it is now possible they could get better pricing with an IPO rather than a sale. Currently, the stock market is very high so there are people exiting. I think we will see people rushing things out before it changes."

Nicholas Holmes, a corporate partner at Ashurst, added: "Current credit market conditions mean that going forward, at least in the short term, the public markets could turn out to be the favoured, or even the only way out for some sellers."

Partners also believe there will be an increase in companies attempting to raise equity for acquisitions through methods such as rights issues. Lovells is currently advising the underwriters on a share placing for engineering group Cookson. The firm is acting for Merrill Lynch and JP Morgan Cazenove on the £150m placing, which was used to part-finance a £497m offer for rival Foseco. Linklaters corporate partner Aedamar Comiskey advised Cookson on the transaction.

Richard Brown (pictured above), the Lovells partner leading the team on the Cookson deal, told Legal Week: "It is still ECM, but it is ECM to finance an acquisition. The markets are changing – people are looking at other ways of raising equity because debt is hard to get."

Allen & Overy capital markets partner Mark Dighero said opinion in the market remains divided: "There appears to be no clear-cut opinion in the market – one big bank we have spoken to is saying 'logically, yes, there will be more IPO work next year'. Another major bank we have discussed the same point with has a completely opposite view."

Holmes added: "In the current market it is proving difficult to get deals away. That position could change very quickly, however, and when it does there will be a queue for the exit forming rapidly as there is a considerable backlog. Other IPO candidates are looking to position themselves for Q1 or Q2 next year."

Additional reporting by Charlotte Edmond.