Best Year for US IPO Listings since 2000
This week’s $2.4 billion IPO for Hilton Worldwide Holdings, which ranks as the third largest US listing this year after Plains GP Holdings ($2.9 billion) and Zoetis ($2.6 billion), pushed the dollar volume of US listed IPOs to $57.8 billion, a 38% increase compared to a year ago and the strongest year for US IPOs, by dollars, since 2000. Energy & power, healthcare, technology and real estate offerings account for 55% of overall activity so far this year, down from a combined 74% during year-to-date 2012.
Bank of America Merrill Lynch leads the ranking of US listed IPO bookrunners with 12.5% market share, a 2.7 point increase compared to last year at this time. Credit Suisse, the top US IPO bookrunner at this time last year has fallen to eighth place, a decline of 3.5 market share points from 2012.
Consumer Staples M&A Falls 30%
Sysco Corp's $8.2 billion bid for US Foods Inc brings the volume of worldwide deal making in the consumer staples sector to $130.3 billion, a 30% decline compared to this time last year and the slowest period for M&A in the sectors in two years. Food and beverage M&A accounts for nearly two-thirds of activity in the consumer staples space this year and has decline 41% compared to a year ago. Deal making in the household and personal products space has nearly doubled compared to year-to-date 2012 and accounts for 10% of activity this year.
Consumer Staples M&A activity in the United States, China and Netherlands accounts for 60% of the overall tally, up from 50% last year at this time. JP Morgan, Lazard and Bank of America Merrill Lynch lead the advisory league tables in the sector this year.
Canadian Acquisitions of US Companies Up 8%
Newfoundland-based electric and natural gas utility Fortis Inc's $4.3 billion purchase of Arizona's UNS Energy Corp takes the volume of Canadian acquisitions of US companies to $31.1 billion for year-to-date 2013, an 8% increase compared to a year ago and the strongest year-to-date period for activity since 2007 ($58.2 billion). Overall Canada outbound cross-border M&A totals $48.4 billion this year, a decline of 14% compared to last year. US targets account for 64% of all outbound purchases by Canadian companies, bolstered by the activity in the retail, energy & power and real estate sectors.
RBC Capital Markets, Credit Suisse and Deutsche Bank lead the year-to-date advisory rankings for Canada's outbound purchases in the United States this year.