KUCHING: The US$1.5 billion (RM4.5 billion) initial public offering (IPO) from broadcast TV operator, Astro Malaysia Holdings Bhd (Astro), pushed the volume of IPOs from Malaysian companies to US$7.3 billion for year-to-date (YTD) 2012, beating the all-time annual record set in 2010 (US$6.9 billion).
Astro became Malaysia’s third multi-billion dollar listing this year, thus also making it Southeast Asia’s third largest IPO till date.
According to Thomson Reuters’ investment banking scorecard, bolstered by a flurry of offerings, Kuala Lumpur listings now ranked fourth globally behind Nasdaq, the New York Stock Exchange and Tokyo First Section, by proceeds raised.
“CIMB Group Sdn Bhd leads the ranking for Malaysian IPO underwritings this year with proceeds of US$1.4 billion for 20.1 per cent market share, followed by Deutsche Bank and Malayan Bank Bhd, each with 12.2 per cent,” it said.
The report further stated that Telekom merger and acquisition (M&A) was up by two per cent over 2011 levels.
T-Mobile USA’s US$3.9 billion bid for MetroPCS Communications, the third largest deal this year, pushed the volume of worldwide merger activity in the telecommunications sector so far this year to US$80.7 billion, a two per cent decline from YTD 2011.
In addition, telecom companies in China, the US and Russia accounted for 59 per cent of overall deal, making in the sector this year, up from 25 per cent during YTD 2011.
China Telecom’s US$18 billion purchase of China Telecommunication’s 3G assets in August ranked as the largest worldwide telecom deal this year and the second largest all-time telecom deal in the country.
Meanwhile, UBS led the financial advisory league tables for telecom M&A with US$27.9 billion, followed by Morgan Stanley, Goldman Sachs and Deutsche Bank.
Thomson Reuters further revealed the global convertible bonds falling to 17-years low. It totalled US$45.4 billion for YTD 2012, a 23 per cent decline from the corresponding period last year and slowest YTD period for convertible bond issuance since 1995 (US$34.8 billion).
“WellPoint Inc’s US$1.5 billion convertible bond offering this week brings the volume of US activity to US$17.6 billion, or one-third of YTD volume, which has declined 26 per cent over the year ago period,” it added.
European issuers, on the other hand, accounted for 27 per cent of activity in 2012, up 25 per cent compared with 2011 levels.
Furthermore, financials, technology, industrials and healthcare accounted for 71 per cent of convertible offerings this year, an increase of 16 per cent since 2011.
JP Morgan led all convertible bond underwriters this year with 10.3 per cent market share, an increase of 0.6 points, while Goldman Sachs had fallen to second place with a loss of 2.3 market share points.