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Global Equity Capital Markets Valued at $890b in 2014

Global Equity  Capital Markets Valued at $890b  in 2014Global Equity  Capital Markets Valued at $890b  in 2014

Equity capital markets activity totaled $890.4 billion during full year 2014, an 11% increase compared to full year 2013 and the strongest annual period for global equity capital markets issuance since 2007. Fourth quarter equity capital markets issuance decreased 8% compared to the third quarter of the year.

Initial public offering activity during full year 2014 totaled $249.0 billion, an increase of 51% from last year and the strongest annual period for global IPOs since 2010, HITC Business reported Saturday.

Issuers in China, the United States and United Kingdom accounted for 58% of all activity during full year 2014, up from a combined 51% a year ago. Bolstered by four of the world's top five listings this year including Alibaba Group's record-breaking $25.0 billion IPO, Asia Pacific IPOs totaled $100.7 billion during full year 2014, the strongest annual period since 2010.

5-Year High

Global follow-on offerings totaled $537.8 billion during full year 2014, an increase of 1% compared to a year ago and the strongest annual period for follow-on offerings since 2009.

Offerings from European companies accounted for 32% of global follow-on issuance, up from 30% during full year 2013. Strong year-over-year gains in Italy and Germany bolstered European volumes, while issuance from companies in the United States fell 15%.

Issuers from the United States raised $253.9 billion in the global equity capital markets during full year 2014, down 9% compared to 2013. Issuers from China and United Kingdom accounted for 15% and 7%, respectively, of overall equity capital markets activity during full year 2014.

Led by Financial issuers (20%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Energy and Power (14%), Technology (12%) and Industrials and Real Estate (11%).

ECM Rankings

Goldman Sachs led all equity capital markets underwriters during full year 2014, with $77.3 billion in proceeds from 398 issues, despite a loss of 2.6 market share points compared to 2013. Morgan Stanley, which gained 1.7 market share points for the top spot in global IPO underwriting this year, moved into second place from third in overall ECM during full year 2013.

According to estimates from Thomson Reuters/Freeman Consulting, fees from equity capital markets transactions during full year 2014 totaled $21.3 billion, an 18% increase from full year 2013.

 

Financialtribune.com