Equity Capital Markets
The equity capital markets saw Agricultural Bank of China raise $19.2 billion this week, pushing weekly issuance to $20 billion -- the highest level since ICBC's $21.9 billion IPO in October 2006. Regional volume for the year so far now stands at $120.4 billion from 811 issues and is the highest year-to-date level ever.
The deal has pushed Goldman Sachs to the top of the league table ranking with $7.1 billion, followed by CITIC Securities and China International Capital Corp on $7.0 billion and $6.7 billion respectively. Other joint bookrunners on the deal improved their league table standings with J.P. Morgan up a notch to fourth place ($6.4 billion); Deutsche Bank in eighth place ($4.2 billion) from the 12th rung; Guotai Junan Securities ($2.9 billion) and China Galaxy Securities ($2.7 billion) in the 13th and 14th spots; and Macquarie Group now sitting in 16th place with $2.5 billion and Agricultural Bank of China ranked 20th with $1.5 billion. Morgan Stanley dropped a position to the seventh rung with $4.9 billion.
At $19.2 billion, Agricultural Bank of China's offer is the largest IPO of the year and the third largest globally behind ICBC's $21.9 billion IPO in October 2006 and Visa's $19.7 billion IPO in March 2008. If the overallotment is fully exercised the value will rise to $22.1 billion and be the largest IPO on record.
Issues scheduled to price next week include Bank of Communications' $4.8 billion rights issue led by Goldman Sachs, HSBC, Bank of Communications, CITIC Securities, Bank of America Merrill Lynch, Haitong Securities, UBS, China International Capital Corp and Credit Suisse.
Debt Capital Markets
A total of $927 million was raised from the debt capital markets this week from three trades. Deutsche Bank continues to lead the field in the league table ranking with $4.0 billion, followed by Barclays Capital and HSBC on $3.25 billion and $3.23 billion respectively.
A $500 million bond for Korea Exchange Bank was the largest deal of the week and led by Bank of America Merrill Lynch, Citi, HSBC and Morgan Stanley. Both Morgan Stanley and Citi moved up a notch in the league table to the fourth and fifth places respectively; while Bank of America Merrill Lynch maintained seventh place, following this deal.
China Development Bank also raised $400 million this week via bookrunners Agricultural Bank of China and Mizuho.
