Asian capital markets boom as SPACs, PE funds make their presence felt

Buoyant ECM and M&A activity in Asia through the first half of this year indicates that 2021 will likely be a bumper year for dealmaking. FinanceAsia takes a look at the reasons underlying this trend and whether the current momentum will be sustained.

Asia is on course for an exceptional year in terms of both ECM issuances and the MA pipeline. Asian ECM deals including those in Japan have raised a total of $325 billion as of August 13, already reaching 71% of the volume recorded in the year 2020, according to data from Refinitiv.

The performance up until August 13 has also beaten the annual ECM volumes seen in the four years from 2016 to 2019 inclusive.

Concurrently, MA is on a roll. MA deal announcements involving Asian entities, measured by the valuation of targets, including net debt, touched $798 billion as of August 13. Out...

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