Equity Capital Markets
LG Philips LCD priced the second largest technology IPO out of Asia this year on Thursday. The $1 billion deal was run by Morgan Stanley and UBS along with local houses LG Securities and Dongwon Securities. Despite the credit gained Goldman Sachs is still comfortably leading the Asia ex Japan ECM table with over $6.5 billion from 20 deals.
Morgan Stanley is in second followed by UBS with $5.5 billion and $3.7 billion respectively. For the third week running there was no change in the league table positions as dealflow continues to be lacklustre.
Even though $1.5 billion was raised this week, the LG Philips IPO comprising 66% of the volume with the remainder of the 10 offerings accounting for less than $500 million. This situation is expected to continue into next week with few offerings in the pipeline.
Debt Capital Markets
After weeks in the doldrums the debt market sparked into life with the biggest weekly volume of the year. A total of $2.4 billion was printed from three trades, buoyed by the $1.25 billion offering for the Hong Kong Government. Both Citigroup and Deutsche Bank, number one and two in the table, were not involved in any deals this week.
Barclays took advantage by closing the gap on second placed Deutsche Bank to just $150 million. The UK house ran the books on two deals this week, a $150 million trade for Korean Southern Power along with ABN Amro and a $1 billion transaction for KDB. The latter deal was jointly run with CSFB and HSBC and lifted Barclays to $2.5 billion from seven issues.
HSBC also made a move up the table, gaining $333 million credit on the KDB deal. It also banked $250 million from the Hong Kong government trade, which it acted as a joint bookrunner along with Bank of China, Goldman Sachs, Merrill Lynch and Morgan Stanley. This pushed HSBC into fifth spot - the highest ranking it has achieved all year - with $1.7 billion from nine deals, marginally ahead of UBS in sixth.
The other banks involved in the Hong Kong trade were unable to boost their positions with Morgan Stanley and Goldman still occupying the basement slots while Merrill Lynch and Bank of China sit in 11th and 12th place. Only a handful of transactions are in the pipeline, although Citibank, Goldman Sachs and HSBC are expected to price a $1bn trade for Chexim by the end of July.
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