Equity capital markets review 2017: Top 20 firms

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Global ECM activity hits two-year high, up 18.5%

Equity capital markets activity totaled US$783.7 billion during full year 2017, an 18% increase compared to a year ago and the strongest annual period for global equity capital markets issuance in two years. By number of issues, 5,735 ECM offerings were brought to market during the year, a 21% increase compared to a year ago and the strongest full year period for number of new offerings since records began in 1980.

Follow-on offerings up 13%, led by financials, media & telecom

Global follow-on offerings totaled US$509.9 billion during full year 2017, an increase of 13% compared to a year ago and the strongest anunal period for follow-on offerings since 2015. Follow-on offerings from companies in the Financial sector accounted for 22% of capital raising during 2017, up significantly from 12% of overall follow-on offerings a year ago. Financials, Media and Telecom offerings increased a combined 95% compared to full year 2016.

Triple-digit percentage increase for US IPO listings

Global IPO activity during full year 2017 totaled US$179.3 billion, a 35% increase compared to last year and the strongest annual period for global IPOs since 2014. Proceeds from listings on US exchanges surpassed US$38 billion for the first time since 2014, while IPOs by EMEA issuers increased 35% over 2016 tables. Asia Pacific (ex. Australia) IPO activity increased 20% from 2016. During the fourth quarter of 2017, global IPO activity totaled US$54.6 billion, a 24% increase compared the third quarter of this year and the strongest quarter for global IPOs since the fourth quarter of 2015.

European issuers account for 29% of global ECM

Issuers from Europe raised US$228.3 billion in the global equity capital markets during full year 2017, an increase of 46% compared with levels seen a year ago. Europe accounted for 29% of overall issuance during the year, the highest percentage since 2014, when European issuers accounted for 30% of issuance. Offerings by issuers in the Americas, which accounted for one third of ECM activity during full year 2017, increased 14% compared to a year ago.

Four sectors account for 54% of activity

Led by Financial issuance (20%), the overall volume of equity capital markets activity remained highly concentrated among four main sectors including Industrials (12%), Technology (11%) and Energy & Power (10%).

Morgan Stanley tops global ECM rankings

Morgan Stanley took the top spot for global equity capital markets underwriters for the first time since 2010, with US$66.4 billion in proceeds from 404 issues, an increase of 1.3 market share points compared to a year ago. Goldman Sachs moved into second place with a market share increase of 0.5 points, while JP Morgan fell to third place with a market share of 7.6%, down 0.9 points from a year ago.

ECM fees increase 42%

According to estimates, fees from equity capital markets transactions during full year 2017 totaled US$20.1 billion, up 42% compared to levels seen a year ago.

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

Source: Thomson Reuters

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