Best Start For US IPO Fees Since '05
Fees for underwriting US initial public offerings total $533 million for year-to-date 2011, more than four times fee levels at this time last year and the strongest start for US IPO fees since 2005. This week's $3.8 billion offering from HCA generated $137 million for the underwriters, the biggest US IPO, by fees, since the $19.7 billion listing from Visa generated $550 million in fees three years ago.
Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch have collected just over 30% of US IPO fees this year. HCA joins GM as the only two IPOs in US history to have nine bookrunners - the most since records began in 1985.
German M&A Activity More Than Doubles
The $4.7 billion bid for Tognum AG, an engine manufacturer, by Siebte, a joint venture between Daimler AG and Rolls Royce PLC ranks as the largest German M&A deal this year and brings the volume of German target M&A activity to $9.6 billion, the strongest start for merger activity in Germany since 2007 when announced deals totaled $11.6 billion.
M&A activity in the German industrials and materials sectors account for 83% of this year's activity. Last year, German target M&A totaled $46.6 billion, a 42% decline from full year 2009 and the slowest full year period for merger activity in Germany since 1996.
Emerging Markets Debt Up 67%
UAE-based IPIC, a special purpose finance company, raised $4.3 billion this week, the second largest emerging markets corporate debt offering this year behind the $5.9 billion offering from Brazil's Petrobras in January. The volume of corporate debt from emerging markets issuers totals $50.7 billion for year-to-date 2011, a 67% increase over last year at this time.
Financials, energy & power, and materials account for 86% of overall activity from emerging markets issuers this year. Citi tops the year-to-date ranking for bookrunners of emerging market corporate debt with 10% market share, a 3.3 market share point increase over last year at this time.
Source - Thomson Reuters