Equity Capital Markets
The equity capital markets saw a total of $22.8 billion raised from 35 issues this week, driven by AIA Group’s $17.8 billion offering. This is the largest weekly volume since Agricultural Bank of China’s IPO in July. Goldman Sachs continues to head the league table ranking with $16.7 billion, while Morgan Stanley and UBS round out the top three on $14.3 billion and $14.1 billion respectively.
AIA successfully raised $17.8 billion from the market this week and stands as the biggest listing in Hong Kong on record – surpassing the $16.1 billion raised by Industrial and Commercial Bank of China (ICBC) in 2006. If the overallotment option is exercised in full, the deal will be the third largest in the world ever (behind Agricultural Bank of China and ICBC).
The deal involved 11 bookrunners and among them UBS moved up a notch in the rankings (the bank also worked on a $741 million follow-on for Sihuan Pharmaceutical Holdings Group together with Morgan Stanley); J.P. Morgan and Credit Suisse each climbed up a rung to fourth and sixth place respectively; and Citi jumped two places to seventh. Other bookrunners were Bank of America Merrill Lynch, Barclays Capital, CIMB Group, Deutsche Bank, Goldman Sachs, ICBC International and Morgan Stanley.
Issues scheduled to price next week include Daqin Railway’s $2.6 billion Shanghai IPO, led by China International Capital Corp, Everbright Securities and Essence Securities; and a $346 million IPO for Yashili International Holdings via bookrunners Bank of America Merrill Lynch, Citic Securities and UBS.
Debt Capital Markets
A total of $700 million was raised from two deals in the debt capital markets this week. The top 10 league table rankings remain static with HSBC, Morgan Stanley and Deutsche Bank sitting in the top three places on $6.3 billion, $6.1 billion and $5.8 billion respectively.
A $400 million bond for Nan Ya Plastics (Hong Kong) Corp was the biggest deal of the week and led by Mizuho and Mitsubishi UFJ Financial Group. Glorious Property Holdings also raised $300 million via Standard Chartered Bank.