Equity and equity-linked transactions listed in Asia Pacific totaled US$163.9 billion to date, a 5% decline from the full year 2012 volume ($172.5 billion), according to Thomson Reuters' Asia Pacific ECM Preliminary Review for Full Year 2013.
Total proceeds during fourth quarter of 2013 amounted to $47.5 billion, a 54.0% sequential growth from the third quarter of 2013 ($30.8 billion) but down 9.7% from the fourth quarter of 2012 ($52.6 billion).
Proceeds from initial public offerings (IPO) in Asia Pacific stock exchanges improved by 2.3% so far this year compared to 2012 and reached $40.6 billion, despite the 14.3% drop in number of IPOs, as IPO proceeds from the fourth quarter of 2013 doubled from the last quarter.
The main Hong Kong Stock Exchange captured 36.5% of this year’s initial public offerings in Asia Pacific with $14.8 billion worth of proceeds, a 93.2% surge in IPO proceeds compared to the full year 2012 volume ($7.7 billion).
At least five IPOs from Chinese issuers that listed in Hong Kong this year were above US$1-billion, boosting the IPO market of Hong Kong. China Cinda Asset Management’s $2.5-billion IPO is the biggest IPO listing in Hong Kong since PICC’s $3.6 billion-IPO in 2012 and also this year’s biggest IPO listing in Asia Pacific.
Two record IPO deals also bolstered IPO proceeds issued in Southeast Asian exchanges to $13.5 billion this year, up 2.1% from 2012, and the strongest annual period for IPOs in the sub-region since 2010 ($16.6 billion). BTS Rail Mass Transit Growth Infrastructure Fund IPO ($2.1 billion) is the biggest IPO in Thailand on record. Meanwhile, Mapletree Greater China Commercial Trust raised $2.1 billion in IPO proceeds, the largest ever REIT IPO in Singapore.New Zealand also saw its biggest equity deal on record through Mighty River Power’s US$1.4 billion this year.
Follow-on Offerings Down 13.4% - Lowest Since 2011
Follow-ons accounted for 63.0% of the ECM listings in Asia Pacific with $103.2 billion worth of proceeds, a 13.4% decline from 2012, and the lowest annual period since 2011 ($99 billion). China Everbright Bank, which issued its IPO originally in Shanghai last 2010, listed additional shares in the Hong Kong Stock Exchange for the first time raising $2.6 billion in proceeds.
Total proceeds from stake sell downs of Asian shares through block trade reached $26.3 billion, a 49.6% drop from last year’s record annual period ($52.2 billion).
Common Stock offerings (combined IPO and Follow-ons) raised a total of $143.8 billion, down 9.5% from the previous year ($158.8 billion), and witnessed the lowest annual period since 2008 when proceeds amounted to $101.2 billion.
Financials Capture 22.9% of ECM Activity for 2013 YTD
The Financials sector captured majority of the ECM issuance in Asia Pacific thus far with 22.9% market share worth $37.5 billion, despite the 26.7% decline in proceeds. Industrials (15.0%), Energy & Power (13.8%) and Real Estate (11.3%) accounted for a total of 40.1% market share after witnessing a 13.9%, 5.7% and 62.2% growth in ECM proceeds, respectively, from last year.
The bulk of the proceeds for IPO listings in Asia Pacific were also from the Financials industry, with 21.0% market share worth US$8.5 billion in proceeds, up 60.6% from the 2012 volume. Real Estate followed second place with 16.2% market share worth $6.6 billion, a 91.7% increase from last year. UBS Currently Leads Asia Pacific-listed ECM Underwriting UBS currently maintained its top position in Asia Pacific-listed ECM underwriting League Table so far this year, with deals worth $18.4 billion, a 14.1% increase in related proceeds compared to 2012, and gained 1.8 market share points to account for 11.2% of the market activity.