Equity Fund Raising Rises 88% To $32.7 Bn In First 9 Months Of 2020

Capital raising through equity-linked instruments totalled $32.7 billion in the first nine months of 2020, up nearly 88 per cent over the same period last year.

This is already a record year for amount mobilised through the equity capital markets (ECM), topping $31.2 billion raised during calendar 2007, according to financial data firm Refinitiv.

Experts said if the current run rate is maintained, ECM activity for the full-year could touch $44 billion. ECM activity includes funds raised through initial public offerings (IPOs), rights issue, block deals and qualified institutional placements (QIPs). The ECM activity this year has been underpinned by the rally in the stock prices fuelled by aggressive stimulus measures taken by global central banks.

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Last year, a total of $22 billion was raised through 136 deals (109 deals in the first 9 months). In comparison, there have been only 90 deals this year. Big-ticket activity in several blue chip companies has buoyed the total ECM tally this year. The biggest ECM deal for the year remains the $ 7.1-billion rights issue by Reliance Industries (RIL) in June. GlaxoSmithKline’s (GSK) 5.7-per cent stake in Hindustan Unilever (HUL) in May is the second-biggest transaction.

Overall, financials remained the biggest sector with nearly 39 per cent market share. Yes Bank and ICICI Bank’s $2-billion fund raise each were the biggest deals in the financial sector.