Global Equity Capital Markets Down 46% From 2015 | China ECM: Record 20% Share | Global IPO Activity Falls 55% | Follow-On Offerings Fall to Four-Year Low | ECM Fees Down 47%
Global ECM activity falls 46% to four-year low
Equity capital markets activity totaled US$289.0 billion during the first half of 2016, a 46% decrease compared to a year ago and the slowest first half for global equity capital markets issuance since 2012. By number of issues, 2,050 ECM offerings were brought to market during the first half of 2016, a 25% decrease compared to a year ago and the slowest opening six month period for new offerings since the first half of 2012 when just over 2,000 deals priced.
Follow-on offerings down 45%, account for 72% of ECM
Global follow-on offerings totaled US$206.8 billion during the first six months of 2016, a decrease of 46% compared to a year ago and the slowest first half for follow-on offerings since 2012. Follow-on offerings from companies in the oil & gas sector accounted for 16% of capital raising during first half 2016, up significantly from 7% of overall follow-on offerings during the first half of last year.
US listings down 67%, lowest first half since 2009
Global initial public offering activity during the first six months of 2016 totaled US$45.7 billion, a decrease of 55% from last year and the slowest period for global IPOs since 2009. Proceeds from US IPO listings fell by 67% compared to a year ago, while activity in Asia Pacific and Europe declined 49% and 57%, respectively. Global IPO activity during the second quarter of 2016 totaled US$32.6 billion, more than double proceeds raised during the first quarter of the year, while the number of new listings increased 34% compared to the previous quarter.
China issuers account for record 20% of global ECM
Issuers from China raised US$58.4 billion Global Equity & Equity-Related Volume in the global equity capital markets during the first half of 2016, down 40% compared to a year ago but the highest percentage first half 2016 ECM activity since records began in 1980. Issuers from the United States, which accounted for 28% of first half 2016 ECM activity, fell 50% compared to a year ago.
Four sectors account for over 60% of activity
Led by Energy & Power issuers (20%), the overall volume of equity capital markets activity remained highly concentrated among four main sectors including Financials (17%), Real Estate (13%), and Industrials (12%).
JP Morgan tops global ECM rankings
JP Morgan led all equity capital markets underwriters during the first half of 2016, with US$24.4 billion in proceeds from 151 issues and an increase of 0.5 market share points compared to a year ago. Morgan Stanley moved into second place with a market share increase of 0.2 points, while Goldman Sachs fell to third place with a market share decline of 2.1 points.
ECM fees decline 47%
According to estimates from Thomson Reuters/Freeman Consulting, fees from equity capital markets transactions during the first half of 2016 totaled US$6.1 billion, down 47% compared to levels seen during the first six months of 2015.