Global equity capital markets - JPMorgan on top, Goldman on the rise

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Global ECM activity falls 5% as third quarter issuance falls 55%.

Equity capital markets activity totaled US$662.2 billion during the first nine months of 2015, a 5% decrease compared to a year ago and the slowest opening nine-month period for global equity capital markets issuance since 2013. Third quarter equity capital markets issuance decreased 55% compared to the second quarter of this year, marking the slowest quarter for global ECM activity since the fourth quarter of 2011.

Follow-on offerings set nine month record, up 10% from 2014

Global follow-on offerings totaled US$472.3 billion during the first nine months of 2015, an increase of 10% compared to a year ago and the strongest first nine months for follow-on offerings since records began in 1980. Offerings from companies in the United States accounted for 30% of global follow-on issuance, up from 28% during first nine months of 2014. Follow-on offerings from banks, REITs and pharmaceutical companies accounted for 27% of capital raising so far this year.

IPOs fall 35%; US issuers down 42%, Asia Pacific IPOs fall 74% in Q3

Initial public offering activity during the first nine months of 2015 totaled US$119.2 billion, a decrease of 35% from last year and the slowest period for global IPOs in two years. The shutdown of IPO activity on China's domestic stock exchanges dragged third quarter IPO issuance in Asia Pacific down 74% compared to the second quarter of this year.

China issuers account for record 17% of global ECM

Issuers from the China raised US$113.7 billion in the global equity capital markets during the first nine months of 2015, up 20% compared to a year ago and the highest percentage of global ECM since records began in 1980. Issuers from United States, which accounted for 29% of first nine months ECM activity, fell slightly negative compared to a year ago.

Five sectors account for two-thirds of activity

Led by Financial issuers (24%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Healthcare, Energy and Power, Industrials (each with 11%) and Real Estate (9%).

Goldman Sachs tops global ECM rankings

Goldman Sachs led all equity capitalmarkets underwriters during the first nine months of 2015, with US$58.6 billion in proceeds from 256 issues, despite a loss of 0.1 market share points compared to a year ago. JP Morgan and Morgan Stanley maintained second and third place, respectively. UBS, which gained 1.3 market share points during the first nine months, moved into fourth place from eighth in overall ECM during the first nine months of 2014.

ECM fees decline 14%

According to estimates from Thomson Reuters/Freeman Consulting, fees from equity capital markets transactions during the first nine months of 2015 totaled US$14.3 billion, down 14% compared to levels seen during the first nine months of 2014.

Global Debt, Equity & Equity Related (A1) Q3 2015: Thomson Reuters

Source: Thomson Reuters

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