The $1.1 billion initial public offering of Japan's Nippon Prologis Reit Inc, pushed global IPO volume to $10.6 billion for year-to-date 2013, more than triple the level of activity seen during year-to-date 2012. Nippon Prologis is the third billion-plus IPO this year, joining US-based Zoetis Inc which raised $2.6 billion on the New York Stock Exchange and German REIT, LEG Immobilien AG, which raised $1.6 billion in Frankfurt at the end of January.
Real estate listings account for one-third of all global IPO activity so far this year. Real estate, combined with healthcare and materials offerings, account for 70% of year-to-date global IPO activity. Goldman Sachs and Deutsche Bank which have lead three of the top five IPOs this year, lead all other bookrunners so far this year, each with 13% market share.
TMT M&A Accounts for One-Third of WW M&A
With the $21.7 billion bid for Virgin Media Inc by Liberty Global Inc and the $18.1 billion buyout of Dell Inc, worldwide Tech, Media and Telecom (TMT) M&A activity totals $64.8 billion for year-to-date 2013, the strongest start for TMT M&A since 2000. Accounting for 33% of announced M&A so far this year, deal making in the TMT sector has more than tripled compared to last year at this time. At this point in 2000, TMT merger activity accounted for 66% of announced M&A. US targets account for 84% of activity in the TMT sector this year, followed by China and Hong Kong (each with 2%)
Credit Suisse, an advisor to Liberty Global and Silver Lake Partners in its bid for Dell, narrowly leads the ranking of financial advisors in the TMT sector, followed by JP Morgan and Goldman Sachs.
Boutique Investment Banks Keep Momentum
LionTree Advisors, founded by former head of Americas investment banking at UBS, landed the biggest M&A mandate in firm history, advising Liberty Media in its $21.7 billion bid for Virgin Media, while Centerview Partners and Ondra Partners advised on the Biogen Idec's acquisition of the remaining 50% stake in multiple sclerosis treatment Tysabri from Ireland's Elan Corp Plc.
During full year 2012, boutique and independent investment banks accounted for 21% of global M&A advisory fees (based on the top 50 advisors), compared to 10% during full year 2002. Conversely, the top full service investment banks accounted for 44% of global M&A advisory fees during full year 2012, compared to 60% during full year 2002.