Global ECM activity falls 3% as fourth quarter issuance rebounds
Equity capital markets activity totaled US$870.0 billion during full year 2015, a 3% decrease compared to a year ago and the slowest annual period for global equity capital markets issuance since 2013. Fourth quarter equity capital markets issuance increased 49% compared to the third quarter of this year, which marked the slowest quarter for global ECM activity since the fourth quarter of 2011.
Follow-on offerings hit six-year high, up 10% from 2014
Global follow-on offerings totaled US$591.4 billion during full year 2015, an increase of 10% compared to a year ago and the strongest annual period for follow-on offerings since 2009. Offerings from companies in the United States accounted for 28% of global follow-on issuance, up slightly compared to a year ago. Follow-on offerings from banks, pharmaceutical companies and REITs accounted for 27% of capital raising during the year.
IPOs fall 25%; US listings down 66%, Asia Pacific IPOs double in Q4
Initial public offering activity during full year 2015 totaled US$188.4 billion, a decrease of 25% from last year and the slowest period for global IPOs in two years. US IPO listings fell by nearly two thirds during the year, while IPO activity in Asia Pacific rebounded from the third quarter shutdown for Chinese domestic listings, more than doubling proceeds raised during the previous quarter.
China issuers account for record 17% of global ECM
Issuers from the China raised US$149.9 billion in the global equity capital markets during full year 2015, up 9% compared to a year ago and the highest percentage of global ECM since records began in 1980. Issuers from United States, which accounted for 26% of full year 2015 ECM activity, fell 10% compared to a year ago.
Five sectors account for two-thirds of activity
Led by Financial issuers (26%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Industrials, Energy and Power and Healthcare (each with 11%) and Technology (8%).
Goldman Sachs tops global ECM rankings
Goldman Sachs led all equity capital markets underwriters during full year 2015, with US$71.8 billion in proceeds from 331 issues, despite a loss of 0.4 market share points compared to a year ago. Morgan Stanley and JP Morgan maintained second and third place, respectively. UBS, which gained 0.9 market share points during full year 2015, moved into fifth place from seventh in overall ECM a year ago.
ECM fees decline 14%
According to estimates from Thomson Reuters/Freeman Consulting, fees from equity capital markets transactions during full year 2015 totaled US$18.3 billion, down 14% compared to levels seen during full year 2014.