Equity capital markets review H1 2018 - JPMorgan on top

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Global ECM activity surpasses US$400 billion

Equity capital markets activity totaled US$403.2 billion during the first half of 2018, flat compared to a year ago and second consecutive first half to surpass US$400 billion in global equity capital markets issuance. By number of issues, 2,664 ECM offerings were brought to market during the first half, a 5% decrease compared to the opening six months of 2017, which was the largest first half for global ECM offerings since the first half of 1996.

Convertible offerings hit ten-year high

Global convertible offerings totaled US$61.7 billion during the first half of 2018, an increase of 28% compared to last year and the strongest first half for convertible offerings since 2008. Convertible offerings from companies in the Technology sector accounted for 22% of overall issuance raising during the first half of 2018, registering a 36% increase compared to the first half of 2017.

Global IPOs up 22%, a three-year high

Global initial public offering activity during the first half of 2018 totaled US$98.6 billion, a 22% increase compared to last year and the strongest opening period for global IPOs since 2015. Proceeds from US IPO listings surpassed US$30 billion for the first time since the first half of 2014, while IPO activity in EMEA increased 21% compared to a year ago. Asia Pacific (ex. Australia) IPO activity increased 20% from 2017 levels. Global IPO proceeds during the second quarter increased 10% compared to the first quarter of this year and 1% by number of deals.

China issuers account for 18% of global ECM

Issuers from China raised US$74.4 billion in the global equity capital markets during the first half of 2018, an increase of 36% compared with levels seen a year ago. As a percentage of global ECM, China accounts for 18% of overall issuance, an uptick from the 14% recorded during the first half of 2017, and the second highest first half percentage since records began in 1980. Offerings by US issuers, which accounted for 32% of first half 2018 ECM activity, increased 8% compared to a year ago.

Five sectors account for over two-thirds of activity

Led by Technology issuance (17%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Financials (16%), Healthcare (11%) and Energy & Power and Industrials (10%).

Goldman Sachs tops global ECM rankings

Goldman Sachs led all equity capital markets underwriters during the first half of 2018, with US$39.8 billion in proceeds from 204 issues and an increase of 2.4 market share points compared to a year ago. Morgan Stanley maintained second place with a market share increase of 1.8 points, while JP Morgan fell to third place with 7.6% share, down 0.3 points from a year ago.

ECM fees decrease 4%

According to estimates, fees from equity capital markets transactions during the first half of 2018 totaled US$10.1 billion, down 4% compared to levels seen during the first six months of 2017.

Global Debt, Equity & Equity Related (A1) 2018: Thomson Reuters

Source: Thomson Reuters

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