Dealogic league table roundup, January 9

After a lacklustre performance in 2008, capital markets in the region are off to a positive and rejuvenated start in the new year.
Equity Capital Markets

The equity capital markets in Asia ex-Japan are off to a good start to 2009 with a total of $3.6 billion raised from eight transactions in the first week and a half.

Following the completion of the merger between Bank of America and Merrill Lynch last week, the new combined entity starts the new year at the top of the Asia ex-Japan league table with a 53.0% market share. This is attributed to the block trade through which Bank of America sold $2.8 billion worth of shares in China Construction Bank via bookrunners Merrill Lynch and UBS. Additionally, Merrill Lynch was the sole bookrunner as the Li Ka-shing Foundation raised $511 million from the sale of shares in Bank of China.

UBS is in second place with $1.4 billion worth of credit and a 39.0% market share.

Looking back at 2008, the equity capital markets raised a total of $59.6 billion during the year - less than one-third of the record $180.8 billion achieved in 2007 and the lowest annual level since 2003 when the total volume was $55.8 billion. The deal flow slowed to 729 issues, the lowest since 1999 when 430 deals were priced.

Citi capped off 2008 at the top of the Asia ex-Japan league table ranking with $5.3 billion from 23 deals. It was the first time that Citi clinched the top spot since 2003. The US house pulled ahead in the ranking on the back of deals such as China Railway Construction CorpÆs $5.7 billion dual H-share and A-share listing; State Bank of IndiaÆs $4.3 billion rights issue; and Royal Philips ElectronicsÆ $1.1 billion fully underwritten sell-down in LG Display.

UBS maintained its second place ranking from 2007, with $4.7 billion from 22 issues, after being involved in deals such as Reliance PowerÆs $3.0 billion IPO and Want Want China HoldingsÆ $1.0 billion listing. Credit Suisse rounded out the top three on $3.7 billion from 19 deals, having jumped up the league table from seventh place last year. The Swiss bank last held the third spot in 2002.

Banks that improved their standings in the league table in 2008 also include Merrill Lynch, which moved up a notch to fifth place. Danatama Makmur leapfrogged to the sixth spot from 103rd on the back of Bakrie & BrothersÆ $4.4 billion follow-on rights issue; Deutsche Bank moved up a rung to seventh place; and Macquarie clinched the 10th spot from 25th place in 2007.

Among the bookrunners that saw their ranking fall were Morgan Stanley, which dropped a notch to fourth place; Goldman Sachs, which tumbled to eighth from first place; and J.P. Morgan, which fell to ninth place from fourth in 2007.

While ECM activity declined by 67% in Asia ex-Japan, global volume (excluding the largely closed China A-Share and Saudi Arabia markets) fell a more modest 33%, sustained by a large proportion of capital raisings from the financial sector.

China continued to be the dominant contributor to IPO volume in 2008 with $8.4 billion raised. This was down 82% from $68.0 billion in 2007, but accounted for 44% of the regionÆs total. UBS moved up a notch to lead the ECM bookrunner ranking for China in 2008 with an 18% market share, ahead of Morgan Stanley on 16% and Macquarie Group with 7%.

ECM volume during the second half of the year dropped 87% to $12.5 billion from $96.3 billion in the same period the previous year, which was the lowest half-year result since the first half of 2003.

Debt Capital Markets

Following the trend in the equities market, the regionÆs debt capital markets also stirred back to life this week with the Republic of the PhilippinesÆ $1.5 billion bond led by Credit Suisse, Deutsche Bank and HSBC. With a single trade so far this year, the three banks share the top spot in the rankings with $496 million worth of credits each.

In 2008, debt capital markets activity plummeted 56% to $16.8 billion from $38.0 billion in 2007 û the lowest annual level since 2000. The deal flow slowed to 58 trades, which was also the lowest since 2000 when 44 deals were priced.

HSBC led the field in the league table ranking with $2.7 billion from 22 deals, jumping up the ladder from sixth place in 2007. This was the first time the bank has held the top spot since 2003. HSBC was involved in deals such as Republic of IndonesiaÆs $2.0 billion sovereign debt and KeximÆs $1.2 billion corporate bond.

Deutsche Bank finished the year in second place with $2.2 billion worth of league table credit û down a notch following two consecutive years in the top spot. Citi followed in third place with $1.6 billion, also down a rung from second place in 2007.

Bookrunners that improved their league table ranking include Merrill Lynch, which moved up a notch to fourth place; Nomura secured the fifth spot from 19th following its merger with Lehman Brothers; Barclays Capital and Morgan Stanley each climbed up a rung to sixth and seventh place respectively; and Credit Suisse improved by two places to finish the year in ninth position.

Among the banks that saw their ranking fall were J.P. Morgan, which dropped to eighth place from third, and UBS, which fell to 10th place from fourth the previous year.

Corporate investment grade bond volume dropped by 69% to $8.1 billion from a record $26.2 billion in 2007. HSBC, Merrill Lynch and Citi took out the top three spots in the corporate investment grade DCM ranking with shares of 17%, 15% and 13% respectively.

The overall DCM volume plunged 69% in the second half of the year to $2.6 billion from 13 trades compared to the same period last year, which saw $8.6 billion worth of volumes. It was the lowest half-year result since the second half of 1998 when $1.8 billion worth of deals were priced.
¬ Haymarket Media Limited. All rights reserved.

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