Dec 21 (Reuters) - 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 remain muted.”
”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 confident about.
“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 again.”
”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.”
”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.”
”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 money.”
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.”