Global ECM activity hits two-year high, up 61%
Equity capital markets activity totaled US$192.8 billion during the first quarter of 2017, a 61% increase compared to a year ago and the strongest first quarter for global equity capital markets issuance in two years. By number of issues, 1,332 ECM offerings were brought to market during the first quarter, a 57% increase compared to a year ago and the strongest annual period for new offerings since the first quarter of 1996, when 1,333 deals priced.
Follow-on offerings up 44%, account for 68% of ECM
Global follow-on offerings totaled US$130.8 billion during first quarter 2017, an increase of 44% compared to a year ago and the strongest first quarter for follow-on offerings since 2015. Follow-on offerings from companies in the Financial sector accounted for 27% of capital raising during the first quarter of 2017, up significantly from 7% of overall follow-on offerings a year ago.
Triple-digit percentage increase for global IPOs
Global initial public offering activity during the first quarter of 2017 totaled US$32.8 billion, a triple-digit percentage increase compared to last year and the strongest opening period for global IPOs since 2015. Proceeds from US IPO listings surpassed US$11 billion for the first time since the first quarter of 2014, while IPO activity in EMEA increased 29%. Asia Pacific (ex. Australia) IPO activity increased 74% from 2016. Global IPO proceeds during the first quarter declined 34% compared to the fourth quarter of last year and 6% by number of deals.
China issuers account for 16% of global ECM
Issuers from China raised US$30.8 billion in the global equity capital markets during first quarter 2017, an increase of 27% compared with levels seen a year ago. As a percentage of global ECM, China accounts for 16% of overall issuance, a downtick from the 20% recorded during first quarter 2016, which was the highest first quarter percentage since records began in 1980. Offerings by US issuers, which accounted for 31% of first quarter 2017 ECM activity, increased 63% compared to a year ago.
Four sectors account for over 61% of activity
Led by Financial issuance (24%), the overall volume of equity capital markets activity remained highly concentrated among four main sectors including Energy & Power (15%), Industrials (12%), and Technology (10%).
Goldman Sachs tops global ECM rankings
Goldman Sachs led all equity capital markets underwriters during the first quarter of 2017, with US$16.6 billion in proceeds from 87 issues and an increase of 0.3 market share points compared to a year ago. JP Morgan fell to second place with a market share decrease of 0.5 points, while Bank of America Merrill Lynch maintained third place with a market share of 6.2%, unchanged from a year ago.
ECM fees increase 97%
According to estimates, fees from equity capital markets transactions during the first quarter of 2017 totaled US$5.1 billion, up 97% compared to levels seen during first quarter 2016.