Activity in the equity capital markets this week began to wind down with $1.2 billion raised via 15 issues. Year-to-date volume for the region stands at $175.9 billion û a record high and up 31% on full year 2006 issuance.
Goldman Sachs continues to hold onto the top spot in the league tables, sitting on $17.3 billion, but is only $255 million ahead of UBS in second place. Morgan Stanley ranks third with $16.5 billion. Compared to full year 2006 rankings, Goldman Sachs has climbed up a notch from second, UBS is down from the top ranking and Morgan Stanley has jumped from seventh place.
The largest deal of the week was Suzlon EnergyÆs $555 million fully marketed deal led by Citi, JM Financial Group and Merrill Lynch. Merrill Lynch also ran the books for Gushan Environmental EnergyÆs $173 million IPO on a sole basis.
The year has seen follow-on and convertible issuance increase by 67% and 56% respectively compared to full year 2006, while IPO volume has fallen by 3%. China CITIC Bank CorpÆs $5.9 billion IPO bookrun by China International Capital Corp, CITIC Group, Citi, HSBC and Lehman Brothers was the largest deal of the year.
ECM volume across all nations in Asia ex-Japan rose, particularly from Southeast Asia where issuance from the likes of Indonesia, the Philippines and Malaysia was up by 315%, 104% and 83% respectively, versus full year 2006 levels. Indian activity increased by 54% while volume out of China (ex A-shares) climbed 30%.
Debt Capital Markets
The debt capital markets saw zero trades this week after some slight activity last week. Year-to-date volume has hit $38.0 billion, down 10% from the $42.0 billion raised last year, including declines of 88% and 86% in November and December compared to the same months in 2006.
Deutsche Bank leads the field in the league table rankings with $5.6 billion from 22 trades, followed by Citi on $4.6 billion and UBS with $3.8 billion. The top three rankings remain unchanged from full year 2006, with Deutsche Bank and Citi having increased their market shares by three and one percentage points respectively.
Issuance from most nations in Asia ex-Japan dropped from 2006 levels with the exception of India, Singapore and Hong Kong. India saw volumes soar by 153%, Singapore managed an 11% increase and Hong Kong volumes grew by 2%.
Investment grade corporate bond volume increased by 36% while issuance of corporate high-yield and sovereign debt fell by 50% and 47% respectively.
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