Global equity capital markets review 3Q 2017: Citi takes top slot

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Global ECM activity hits two-year high, up 20%

Equity capital markets activity totaled US$589.0 billion during the first nine months of 2017, a 20% increase compared to a year ago and the strongest first nine months for global equity capital markets issuance in two years. By number of issues, 4,023 ECM offerings were brought to market during the first nine months, also a 20% increase compared to a year ago and the strongest period for number of new offerings since the first nine months of 1996, when 4,095 offerings priced.

Follow-on offerings up 14%, led by Media, Financials & Telecom

Global follow-on offerings totaled US$397.4 billion during the first nine months of 2017, an increase of 14% compared to a year ago and the strongest first nine months for follow-on offerings in two years. Follow-on offerings from companies in the Financial sector accounted for 24% of capital raising during the first nine months of 2017, up significantly from 11% of overall follow-on offerings a year ago, while media and telecom offerings more than doubled compared to the first nine months of 2016.

Triple-digit percentage increase for US IPO listings

Global IPO activity during the first nine months of 2017 totaled US$121.0 billion, a 48% increase compared to last year and the strongest opening nine- month period for global IPOs since 2014. Proceeds from listings on US exchanges surpassed US$26 billion for the first time since 2014, while IPOs by EMEA issuers increased 42%. Asia Pacific (ex. Australia) IPO activity increased 32% from 2016.

European issuers account for 31% of global ECM

Issuers from Europe raised US$181.4 billion in the global equity capital markets during the first nine months of 2017, an increase of 56% compared with levels seen a year ago. Europe accounted for 31% of overall issuance during the first nine months, the highest percentage since 2014, when European issuers accounted for 32% of issuance. Offerings by US issuers, which accounted for 28% of ECM activity during the first nine months of 2017, increased 18% compared to a year ago.

Four sectors account for 54% of activity

Led by Financial issuance (22%), the overall volume of equity capital markets activity remained highly concentrated among four main sectors including Industrials (12%) Energy & Power (10%) and Technology (10%).

Morgan Stanley tops global ECM rankings

Morgan Stanley led all equity capital markets underwriters during the first nine months of 2017, with US$47.3 billion in proceeds from 292 issues, an increase of 0.9 market share points compared to a year ago. JP Morgan narrowly fell to second place with a market share decrease of 0.7 points, while Goldman Sachs maintained third place with a market share of 7.7%, up 0.7 points from a year ago.

ECM fees increase 46%

According to estimates, fees from equity capital markets transactions during the first nine months of 2017 totaled US$15.1 billion, up 46% compared to levels seen a year ago.

Global Debt, Equity & Equity Related (A1) 2017: Thomson Reuters

Source: Thomson Reuters

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