It was another slow week in the equity capital markets with just $750 million being raised from nine deals. This makes it the third week in a row the volume has failed to move over the $1 billion mark.
Joint books UBS, Citigroup and Morgan Stanley priced the largest deal of the week on Tuesday - a $400 million convertible for LG Philips LCD. UBS and Citigroup remain in second and third respectively, still some $500 million behind Merrill Lynch in first.
Morgan Stanley moved up two spots into fifth place with $1.1 billion in overall offerings. The US house pushed its counterpart Goldman Sachs down into sixth and now sits $250 million behind JPMorgan. Deals are thin on the ground for next week with the $700 million IPO for Shanghai Electric through CSFB one of the few deals expected to priced.
Debt Capital Markets
The Republic of Indonesia provide a spark in the otherwise lifeless G3 Debt Capital Markets this week. This is the first issue since Indian Railway Finance Corp completed its $125 million samurai a month ago.
Citigroup, UBS and Deutsche Bank were leads on the $1 billion trade. Although this had no effect on the league table positions as these three banks stand second, third and fourth respectively, it did allow Citigroup to move within $200 million of leader JPMorgan.
After a period of inactivity several deals are on the brink of coming to the market with the Republic of the Philippines leading the way as it searches for $500 million through Deutsche Bank, JPMorgan and HSBC. Morgan Stanley continues to cement its reputation as the high yield house as it looks to price a $235 million trade for Mandra Forestry from India next week.
Further to these two issuers are looking to raise funds - Korea Exchange Bank has mandated Citigroup and HSBC as it looks for $300m. Barclays and UBS are also expected to start marketing Bank Internasional Indonesia for a $100 to $200 million deal some time next week.