ECM Listings in Asia Pacific Slows Down by 5%

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.



Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern