Despite a painful market correction in May this year, the outlook for global equities has remained generally positive. The explosion of merger and acquisition activity has had a significant impact on issuance, both in the areas of straight equity and equity-linked. Global equity issuance volumes surpassed US$350bn by early September, and are well on the way to overhauling the full-year total of US$465bn in 2005. Equity-linked has shared in the increase, with issuance climbing from US$66bn for the whole of 2005 to US$70.5bn already in 2006. As...Read more
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Choosing the right partner is not easy, and the latest bout of stock exchange consolidation has reached fever pitch over the last few months. Almost every significant player in the sector, right down to the smallest, is desperately seeking a marriage with another. The activity has drawn the attention of regulators and shareholders alike. Ian Forrest reports.
The US$10.6bn IPO of Russian oil giant Rosneft in July was one of the most significant equity deals of 2006. But its background ensured it was also one of the most controversial in history. Although an army of bankers was used, many felt that they were just observers in a process that was being dictated by the Kremlin. Nevertheless, the fact that the deal was done gives hope for a large pipeline. Owen Wild reports.
Equity markets in the Middle East retain many esoteric characteristics that make them difficult for international investors to penetrate. But the increasing wealth of the region makes it a location where investors are keen to invest. On the occasion of its first birthday, the Dubai International Financial Exchange (DIFX) looks steady on its feet, but issues remain with trading and coping with different legal regimes. Owen Wild reports.
Convertible bonds are back in Europe, and the year 2006 looks set to be one of the best for the product for a long time. Volumes are already substantially higher than in 2005, and the resurgence of M&A activity is proving to be a significant driver. Accounting changes could also provide a boost in the future. Mark Baker reports.
The growth in permanent capital deals has been one of the striking aspects of ECM business in Europe this year. Whether originating from property funds, hedge funds or private equity firms, they were all aiming to tap into demand for higher equity returns and a desire to get access to a new family of underlyings. Mark Baker reports.
In the three years that Hong Kong has permitted REIT issuance, bankers have struggled to establish the product. Retail investors – the core market for any successful REIT programme – have largely shunned the instrument in search of something with a little more sizzle, and institutions have looked poorly on issuers’ inclination toward punchy valuations and aggressive structuring. Will Hong Kong ever get REITs right? Jasper Moiseiwitsch reports.
The China Securities Regulatory Commission has in the past months introduced various capital market reforms. Specifically, it has ended a year-long moratorium and allowed the return of A-share IPOs. This is clearly welcomed but has also sparked calls for more regulatory action on IPOs, writes Nichole Chan.
After a stellar 2005 in which over ¥6trn of deals were completed, Japanese ECM activity is set to tear up the record books this year. With the banking and REIT sectors leading the charge, the torrent of equity issuance continues to find eager investors. And although not everything has been perfect, few are forecasting that the primary market will founder any time soon. Brad Frischkorn reports.
Think of the balance sheet as a blank piece of paper, rather than an amalgamation of years of activities, and one begins to understand the new face of the modern corporation. Faced with limited opportunities for investment and growth, stockpiles of idle cash, and the ever-present threat of a leveraged buyout, US corporations are loading up their balance sheets with the goal of driving value to stockholders. Stephen Lacey reports.
The master limited partnership, a high-yielding, tax-advantaged corporate structure, is showing signs of maturity. However, there have also been growing pains, particularly in the capital markets. The IPOs of MLPs’ general partners have had mixed results, and the emergence of an institutional class of investor threatens to impose discipline. Stephen Lacey reports.