Asian Q1 equity volumes dominated by follow-on offerings

In Q1 2013, total proceeds from Asia-Pacific-listed equity and equity-linked deals (ex-Japan) saw a 13.3% sequential decline from the US$52.6 billion recorded in the fourth quarter 2012, according to figures from Thomson Reuters for the period to 25 March. Proceeds of US$45.6 billion nevertheless reflect a 6.2% increase on Q1 2012.

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In Q1 2013, total proceeds from Asia-Pacific-listed equity and equity-linked deals (ex-Japan) saw a 13.3% sequential decline from the US$52.6 billion recorded in the fourth quarter 2012, according to figures from Thomson Reuters for the period to 25 March. Proceeds of US$45.6 billion nevertheless reflect a 6.2% increase on Q1 2012.

So far, the Hong Kong Stock Exchange has captured 24.2% of this year's equity and equity-linked listings in Asia-Pacific with US$11 billion in proceeds, driven by Sinopec Corp's US$3.1 billion follow-on offering in February. Shanghai is second with a 16% market share, followed by the Australian (14%) and Singapore (13%) primary exchanges.

Follow-on offerings accounted for 72.5% of the region's equity capital market activity. Asian stake sell-downs, particularly through block trades, pushed follow-on offerings up 8.0% to US$33.0 billion from the first quarter of 2012. Total proceeds from Asian stake sell-downs through block trades reached US$11.5 billion, a 6% drop after a record start during the first quarter of 2012 (US$12.3 billion) and a 30% decline from the highest quarterly level during the fourth quarter of 2012 (US$16.5 billion).

Proceeds from IPOs listed in Asia-Pacific stock exchanges amounted to US$3.3 billion, down 56.2% from the first quarter of 2012, and the lowest start to a year since Q1 2009 when proceeds fell to US$370 million. The Singapore Exchange captured 43.9% of original IPO listings in Asia-Pacific, bolstered by Mapletree Greater China Commercial Trust's largest ever REIT IPO.

Financials accounted for the majority of Q1 equity issuance in the region with US$12.6 billion in proceeds, a 21.2% decline from the first quarter 2012. Proceeds from Asian stake sell-downs through block trades in financials reached US$3.8 billion, down 58.3% from the same period last year.

In terms of overall trade count across the region, Shanghai was the busiest venue in each month of Q1. In March it accounted for 32.38% of lit order book activity and 32.11% of overall trade count. India's National Stock Exchange, KOSDAQ in Korea and Shenzhen vied for the next three places, accounting in March for between 8.9% and 10.9% each. Tokyo was fourth, accounting for a monthly minimum of 6.86% and a maximum of 9.36% across the quarter.

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