Middle East M&A Rises 50% Over 2011
Qtel's $1.5 billion bid for an additional 30% stake in Iraq-based Asiacell Telecommunication LLC marks the largest M&A deal in the Middle East this year and brings the value of mergers in the region to $9.2 billion for year-to-date 2012, an increase of 50% compared to last year at this time. Middle East deal making in the financials, telecom and retail sectors accounts for 54% of year-to-date activity in the region, compared to 14% during year-to-date 2011.
Credit Suisse and Morgan Stanley, advisors to Asiacell and Qtel, respectively, are tied for the top spot for financial advisory work in the Middle East this year. For worldwide M&A, Morgan Stanley and Credit Suisse rank second and third for year-to-date M&A, behind Goldman Sachs.
Global Follow-On Activity Down 23%
Global follow-on equity capital markets activity totals $178.5 billion for year-to-date 2012, a decrease of 23% compared to last year at this time. The week's two top follow-on ECM transactions from Kinder Morgan ($2.2 billion) and Dollar General ($1.9 billion) brings US activity to $66.0 billion, or 37% of global follow-on issuance. European follow-on issuance totals $41.3 billion this year, down 35% from a year ago. Financials, energy and power and real estate follow-ons account for 63% of year-to-date global activity.
Citi, a bookrunner for Dollar General, leads the year-to-date ranking for global follow-on underwriting with $17.5 billion from 90 offerings, an increase of 4.6 market share points from last year at this time, when the firm ranked eighth.
Slowest Week for IPO Activity since January
The pace of global initial public offerings, totaling $547.8 million from seven new listings, slowed to its lowest weekly level since the week of January 22nd when six offerings raised $224.7 million. Year-to-date IPO proceeds total $53.2 billion, a decline of 44% compared to year-to-date 2011, while global IPO underwriting fees total $2.1 billion so far this year, down 48% compared to last year when fees totaled $4.1 billion.
Morgan Stanley holds the top spot for global IPO underwriting with 7.9% market share, an increase .7 market share points from year-to-date 2011. JP Morgan ranks second, up from eighth last year at this time, while Goldman Sachs has fallen from first to fifth.
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