Thomson Reuters Global Equity Capital Markets Jan

Equity capital markets activity totaled US$451.6 billion during the first nine months of 2012, a 14% decline from the comparable period in 2011. Bolstered by increased follow-on activity, global ECM issuance totaled US$167.6 billion during the third quarter of 2012, an increase of 29% compared to the second quarter of 2012.

FOLLOW-ONS FALL ON PAR WITH 2011

Global follow-on offerings totaled US$326.2 billion during the first nine months of 2012, on par with the first nine months of 2011. With AIG’s record-breaking US$20.7 billion follow-on offering, issuers from the United States accounted for 41% of all follow-on activity during the first nine months of 2012, compared to 36% last year. Offerings from China accounted for 8.6%, while Hong Kong and Canada comprised 5.7% and 5.2%, respectively.

IPOs DOWN 41% FROM 2011; EMERGING MARKETS ACCOUNT FOR 38%

Initial public offering activity during the third quarter of 2012 totaled US$22.2 billion, a decline of 48% from the second quarter of this year. IPO activity during the first nine months of 2012 totaled US$82.4 billion, down 41% compared to the same period last year.

Issuers from the emerging markets raised US$31.1 billion during the first nine months of 2012, accounting for 38% of IPO volume during the period. High technology, industrials and financials accounted for 60% of IPO activity so far this year.

UNITED STATES ISSUERS ACCOUNT FOR 40%; CHINA ECM DOWN 68%

Issuers from the United States raised US$182.5 billion in the global equity capital markets during the first nine months of 2012, up 18% compared to the same period last year. Issuers from China and Japan accounted for 10% and 5%, respectively, of overall equity capital markets activity during the first nine months of 2012

FOUR SECTORS ACCOUNT FOR TWO-THIRDS OF ACTIVITY

Led by financial issuers (30%), the overall volume of equity capital markets activity remained highly concentrated among four main sectors including energy & power (14%), industrials (11%) and real estate (11%).

GOLDMAN SACHS TOPS OVERALL ECM RANKING; JP MORGAN LEADS FEES

Despite a decrease of 0.1 market share points, Goldman Sachs led all equity capital markets underwriters during the first nine months of 2012 with US$40.7 billion in proceeds from 184 issues, on par from last year. JP Morgan, which ranked fourth by proceeds for the first nine months of the year, led all underwriters by fees with US$732.1 million or 7.5% of the equity capital markets fee pool this year.

ECM FEES DOWN 29%

According to estimates from Freeman Consulting, fees from equity capital markets transactions during the first nine months of 2012 totaled US$9.8 billion, a 29% decrease from the same period last year, and the slowest period for global equity capital markets fees since 2003.