Equity and equity-linked transactions listed in Asia Pacific started slow this year as proceeds totaled US$37.8 billion, a 24.3% drop from the first quarter of 2013 (US$49.9 billion), and saw a 38.0% sequential decline from the fourth quarter of 2013 (US$60.9 billion), according to Thomson Reuters. This is the lowest start to a year since 2009 when proceeds fell to US$25.0 billion.
Proceeds from initial public offerings (IPO) in Asia Pacific stock exchanges surged to US$12.6 billion, a 269.0% increase from the first quarter of 2013 (US$3.4 billion), and witnessed the highest first quarter period since 2011 when IPO proceeds amounted to US$24.3 billion.
The Hong Kong Stock Exchange (HKSE) captured 46.7% of this year’s initial public offerings in Asia Pacific with US$5.9 billion worth of proceeds, a 467.4% growth compared to first quarter of 2013 (US$1.0 billion). This was driven by the US$3.1 billion IPO of HK Electric Investments Ltd, the largest ECM deal this year in Asia Pacific.
Globally, HKSE ranked second in terms of IPO proceeds and captured 13.3% of the market share while New York took the lead with US$7.7 billion, up 18.9% from the first quarter of 2013 and captured 17.4% of the IPO proceeds worldwide.
Follow-on Offerings Down 41.4% - Lowest Start Since 2008
Follow-on offerings accounted for 57.5% of the ECM listings in Asia Pacific with US$21.7 billion worth of proceeds, a 41.4% decline from the first quarter of 2013, and the lowest start to a year since 2008 (US$13.4 billion).
Common Stock offerings (combined IPO and Follow-ons) raised a total of US$34.3 billion, down 15.3% from first quarter of 2013 (US$40.4 billion), and witnessed the lowest first quarter period since 2009 when proceeds amounted to US$24.0 billion.
Total amount raised from stake sell downs of Asian shares through block trade reached US$4.3 billion, down 64.3% from the first quarter of 2013 (US$12.2 billion) as number of issues fell 51.1%.
Financials Capture 21.6% of ECM Activity for 2014 YTD
The Financials sector captured majority of the ECM issuance listed in Asia Pacific thus far with 21.6% market share worth US$8.2 billion, despite the 36.6% decline in proceeds. Energy & Power (19.1%) and Industrials (14.5%) accounted for a combined market share of 33.6% even if proceeds declined 19.5% and 10.1%, respectively, from first quarter of 2013. TMT sector (Technology, Media, and Telecommunications) raised US$5.1 billion worth of proceeds, up 43.0% compared to the first quarter of 2013.