Global ECM activity up 27%
Equity capital markets activity totaled US$690.5 billion during the first nine months of 2014, a 27% increase compared to the first nine months of 2013 and the strongest nine- month start for global equity capital markets issuance since 2007. Third quarter equity capital markets issuance decreased 25% compared to the second quarter of the year.
IPOs up 94% from 2013; Asia Pacific issuers account for 39%
Initial public offering activity during the first nine months of 2014 totaled US$179.8 billion, an increase of 94% from last year at this time and the strongest annual start for global IPOs since 2007. Issuers in China, the United States and United Kingdom accounted for 60% of all activity during the first nine months of 2014, up significantly from a combined 47% a year ago. Bolstered by Alibaba Group's record-breaking $25.0 billion IPO, Asia Pacific IPOs totaled $70.2 billion during the first nine months of 2014, the strongest annual start since 2010.
Follow-on offerings hit 5-year high, up 10% from 2013
Global follow-on offerings totaled US$424.1 billion during the first nine months of 2014, an increase of 10% compared to a year ago and the strongest first nine months for follow-on offerings since 2009. Offerings from European companies accounted for 34% of global follow-on issuance, up from 29% during the first nine months of 2013. Strong year-over-year gains in Italy, Germany and the United Kingdom bolstered European volumes, while issuance from companies in the United States and China fell 10% and 7%, respectively.
United States issuers account for 28%
Issuers from the United States raised US$192.6 billion in the global equity capital markets during the first nine months of 2014, up 2% compared to last year at this time. Issuers from China and United Kingdom accounted for 14% and 8%, respectively, of overall equity capital markets activity during the first nine months of 2014.
Five sectors account for 70% of activity
Led by financial issuers (22%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including energy and power (14%), technology (13%) and industrials and real estate (11%).
Goldman Sachs tops global ECM rankings
Goldman Sachs led all equity capital markets underwriters during the first nine months of 2014 with US$61.9 billion in proceeds from 305 issues, despite a loss of 2.1 market share points compared to 2013. JP Morgan and Morgan Stanley rounded out the top three global ECM underwriters, maintaining rankings held during the year earlier period.
ECM fees up 38%
According to estimates from Freeman Consulting, fees from equity capital markets transactions during the first nine months of 2014 totaled US$16.4 billion, a 38% increase from this time last year.