Asia Pacific’s (ex Japan) equity capital market volume rose 88% to $147.5 billion in the first nine months of 2009 compared with $78.4 billion in the first nine months of 2008, according to the Dealogic Global ECM Review released October 1.
The region was boosted by a stronger IPO market and the first nine months IPO volume of $34.6 billion accounted for 68% of the global total.
According to the review, the region’s ECM volume for the third quarter of 2009 was $77.8 billion, up 68% from $46.3 billion in the previous quarter and the highest quarterly total since 4Q 2007. Meanwhile, ECM revenue reached $2.9 billion in the first nine months of 2009, 110% up on the first nine months 2008 total of $1.4 billion. UBS topped the Asia Pacific (ex Japan) volume ranking with a 13.3% share.
On a country level, the review highlighted the Chinese ECM market which climbed 21% in the first nine months of 2009 to $49.3 billion of which $16.9 billion came through the A Share market. The third quarter total of $30.1 billion was boosted by $16.7 billion of A Share issuance.
According to the review, IPO volume in the region rose 76% to $34.6 billion and accounted for 68% of global IPO volume in the first nine months of 2009. IPO issuance soared in the third quarter with several multi-billion deals including China State Construction and Metallurgical Corp of China helping the total raised to $30.9 billion, the highest quarterly level since 4Q 2007.
On a worldwide scale, global ECM volume of $574.4 billion for the first nine months of 2009 was up 9% on the comparative 2008 period ($525.5 billion). The 3Q 2009 volume of $224.0 billion was the highest third quarter total on record as the robust performance of global stock markets led to an increase in issuance, with Asia particularly strong.
Meanwhile, the third quarter of 2009 showed signs of a recovery in the Brazil, Russia, China and India (BRIC) ECM, with China in particular seeing a resurgence in IPO activity. BRIC ECM volume totalled $78.7 billion in the first nine months of 2009 with $47.6 billion of this coming in 3Q. This compared with $79.0 billion in the first nine months of 2008 of which $20.2 billion came in the third quarter.
According the Dealogic review, BRIC countries accounted for 23% of global ECM volume in 3Q 2009, the highest quarterly share since 4Q 2007. The IPO market was dominated by the BRIC countries in the third quarter with 70% of the $37.6 billion raised globally coming from BRIC. In the first nine months of 2009, BRIC IPOs raised $33.9 billion out of a global total of $51.1 billion. Nine of the 10 largest IPOs priced globally were by BRIC issuers.
Over in India, the ECM was boosted in the third quarter by a $1.2 billion IPO from NHPC Ltd, the country’s largest IPO since 1Q 2008.