Basic HTML Version
6
2014 Mid-Year Report
| DR Capital Raisings
Follow-on capital raisings were up 46% versus prior year with
24 issuers raising $4.3 billion. Asia accounted for 42%, or
$1.8 billion, led by Inotera Memories, Inc. (a semiconductors
company from Taiwan) which raised $418 million (or 10% of
the total amount raised in follow-on offerings). In terms of
industries, issuers from Communications, Technology and
Financial sectors accounted for over $3.2 billion (or 75%) of
follow-on offerings. Improved global capital markets outlook
has driven the pipeline of deals coming to market.
During the first quarter of 2014, DRs outperformed the
overall global equity capital markets in terms of capital
raising. Global equity market capital raisings totaled $415.4
billion
1
during the first quarter of 2014, an increase of 21%
over same period prior year, versus a 178% increase for
DRs. Similar to the capital raising trend in DRs, initial public
offerings rose dramatically this year, up 71%, when compared
to the prior year.
We expect the IPO pipeline to remain active with some billion
dollars expected to come to market in DR form. We also expect
DR issuers to continue to increase their capital base through
follow-on offerings, convertible bonds and rights offerings.
During the first half of 2014, DR capital raisings reached
approximately $9.5 billion, an increase of US$6.1 billion (or
178%) versus prior year. Approximately $5.2 billion (or 55%
of total DR capital raised) was raised through initial public
offerings. Asia was at the forefront of the overall capital
raisings with 23 issuers from the region raising approximately
$5.6 billion. Globally, the most notable transactions came
from issuers from China, Russia, and Brazil, raising $4.3
billion, $1.3 billion and $1.1 billion, respectively. In terms
of industries, issuers from Communications, Consumer
(Cyclical), Financial and Technology sectors accounted for
approximately 82% of the total capital raised.
The total amount of capital raised through IPOs increased
dramatically this year, up 992% versus prior year, and driven
by a larger number and size of deals. The most notable IPO
was JD.com, Inc. (a Chinese e-commerce company), which
raised over $2 billion in DR form. In terms of industries,
issuers from the Communications and Consumer (Cyclical)
sectors led the way, raising over $3.8 billion.
YTD 2014 DR Capital Raising
By Type
By Country
By Industry
2
DR Capital Raisings
ADR
72%
GDR
28%
Value: $9.5 Billion
Others
4%
Chile 2%
Georgia
3% UK
3%
France
4%
Taiwan
6%
Korea
7%
Brazil
12%
Russia
14%
China
45%
Value: $9.5 Billion
Transportation
1%
Utilities 1%
Industrial 2%
Energy 3%
Basic Materials
4%
Consumer Non-cyclical
8%
Technology
9%
Financial
10%
Consumer, Cyclical
13%
Communications
50%
Value: $9.5 Billion
Source: Bloomberg Financial Markets and Depositary Data Interchange
1
Based on estimates from Thomson Reuters.
2
Industry sector classifications as defined by Bloomberg Financial Markets.