Credit Suisse transformed its Australian equity capital markets business in 2016, boosting its market share and investing in its team to position itself as a serious competitor to the top houses.
The Swiss bank’s share of equity and equity-linked underwriting in Australia and New Zealand soared from 1.9% in 2015 to 9.3% in 2016, according to Thomson Reuters data, lifting it six places on the league table into third spot by proceeds raised.
In a year when equity issuance shrank dramatically, Credit Suisse increased its deal count significantly. During the review period, it worked on 50% more deals than in the previous 12 months, helping 18 clients access capital.
Underlining its commitment to ECM as a priority business, Credit Suisse also strengthened its team with seasoned professionals. Michael Stock joined as head of investment banking for Australia and New Zealand in 2016, as did Simon Cox as co-head of equity capital markets for Australia. Both made the switch from UBS.
Credit Suisse managed a broad book of business in 2016 but was especially impressive in capital raisings linked to mergers and acquisitions, a key theme of the Australian market in the year under review. The bank handled a number of transformational financings, such as the A$652m (US$485m) entitlement offer and placement from Vocus Communications and the A$888m rights issue and placement from Mayne Pharma.
Both deals were executed in the week after UK’s decision to leave the European Union and prior to the Australian national election.
The bank was also well positioned to benefit from the rebound in the metals and mining sector, leading placements for Evolution Mining (A$401m), Syrah Resources (A$194m) and a block in Regis Resources (A$244m).
The A$168m listing of software company Wisetech Global was also a highlight. The bank’s global strength in technology helped make the deal a success and it proved to be a coup for Australia after the company decided to stay and float in its home market.
In New Zealand, the bank’s partnership with First NZ Capital Securities paid dividends with the NZ$263m accelerated entitlement offer for gaming and entertainment firm Skycity, the year’s largest accelerated follow-on.
“ECM is a growth area for Credit Suisse,” said Adam Lennen, co-head of equity capital markets for Australia at Credit Suisse. “The mandate is to drive further growth in Asia-Pacific, and this includes Australia. From a competitive perspective, our Australia equities and ECM franchise has a strong market position.”
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