Dec 21 Global equity fundraising totals $625
billion so far this year, up 1 percent on 2011 as companies and
their advisors made the most of opportunities to get quick share
sales done, helping offset a 28 percent fall in new listings.
Below is a selection of comments from equity capital markets
(ECM) bankers about the year and their expectations for 2013.
CRAIG COBEN, HEAD OF EMEA ECM, BANK OF AMERICA MERRILL LYNCH
"We do not know how next year is going to look. It is a bit
like driving a car at night on an unlit road - you can only see
as far as the lights but it will get you there. But I do think
2013 will be better than 2012.
"The biggest driver for us is going to be macroeconomic
performance in Europe. If you have no growth, you are not going
to have sustained inflows into equities and you are not going to
have a lot of momentum for deals. As long as the euro crisis
persists, the markets may improve, but new issue activity will
SAM DEAN, GLOBAL CO-HEAD OF ECM, BARCLAYS
"There is a real mix of deals in the pipeline, across all
markets and sectors. Investors have started to build trust,
deals have been priced well and traded well. People have been
more cautious about not launching deals they don't feel
"We are in the early stages of recovery. We only need two or
three IPOs to be badly run and investors will lose their trust
JOSEPH CASTLE, HEAD OF GLOBAL EQUITIES SYNDICATE, BARCLAYS
"Some resolution on the fiscal cliff will be like unlocking
the padlock on IPOs.
"If there are some successful deals early in the year it
will feed onto itself and can cause the market to open up."
KLAUS HESSBERGER, CO-HEAD OF EMEA ECM, JP MORGAN
"The windows in which IPOs can get done open quickly and
close quickly, but there are windows out there.
"Some companies have been selling their non-core stakes or
carved out businesses as a way to raise liquidity or deleverage,
and this trend likely will continue next year."
DARRELL UDEN, CO-HEAD OF EMEA ECM, UBS
"It has been a year where we have all had to adapt, both
banks and investors, and along with having had time to learn how
to better navigate a more difficult market environment; that is
really what has put IPOs back on the map.
"Unless we have a significant macro event of development
that derails the markets again then we can expect to see deals
continue to come. There is no reason why issuance should start
to slow down. Deals have performed well and made investors
LEAR BEYER, HEAD OF EQUITY SYNDICATE AND FINANCIALS
ORIGINATION, WELLS FARGO & CO
"If you have a unique platform with high growth you can
always go out. We always tell people to be prepared."