Global ECM activity falls 56% to seven-year low
Equity capital markets activity totaled US$110.8 billion during the first quarter of 2016, a 56% decrease compared to a year ago and the slowest opening period for global equity capital markets issuance since 2009. By number of issues, 783 ECM offerings were brought to market during the first quarter of 2016, a 37% decrease compared to a year ago and the slowest opening period for new offerings since the first quarter of 2009 when 463 deals priced.
Follow-on offerings down 55%, account for three-quarters of ECM
Global follow-on offerings totaled US$83.3 billion during the first quarter of 2016, a decrease of 55% compared to a year ago and the slowest first quarter for follow-on offerings since 2009. Offerings from companies in the United States accounted for 39% of global follow-on issuance, up slightly compared to a year ago. Follow-on offerings from companies in the oil & gas sector accounted for 22% of capital raising during the first quarter of 2016, up significantly from 9% of overall follow-on offerings during the first quarter of last year.
US listings down 92%, lowest quarter since 2008
Global initial public offering activity during the first quarter of 2016 totaled US$12.4 billion, a decrease of 69% from last year and the slowest period for global IPOs since 2009. Proceeds from US IPO listings fell by 92% compared to a year ago, while IPO activity in Asia Pacific was boosted by two Hong-Kong Listed IPOs from Chinese banks, bringing quarterly volume to US$6.9 billion, a 41% decline and the slowest first quarter for IPOs in the region since 2013.
China issuers account for record 18% of global ECM
Issuers from China raised US$20.3 billion in the global equity capital markets during the first quarter of 2016, down 33% compared to a year ago but the highest percentage of first quarter global ECM since records began in 1980. Issuers from United States, which accounted for 31% of first quarter 2016 ECM activity, fell 60% compared to a year ago.
Five sectors account for 70% of activity
Led by Energy & Power issuers (25%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Real Estate (14%), Industrials (12%) and Healthcare (10%) and Financials (9%).
JP Morgan tops global ECM rankings
JP Morgan led all equity capital markets underwriters during the first quarter of 2016, with US$10.2 billion in proceeds from 56 issues and an increase of 0.9 market share points compared to a year ago. Goldman Sachs and Morgan Stanley rounded out the top three, with year-over-year market share declines of 1.4 points and 1.2 points, respectively.
ECM fees decline 54%
According to estimates from Thomson Reuters/Freeman Consulting, fees from equity capital markets transactions during the first quarter of 2016 totaled US$2.4 billion, down 54% compared to levels seen during the first quarter of 2015.