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Year-End 2013 Report
| Global DR Trends
Follow-on capital raisings was up 135% versus prior year with
24 issuers raising $4.9 billion. Asia accounted for 53%, or
$2.6 billion. The most notable follow-on offering in DR form
was Fubon Financial Holdings (a financial institution from
Taiwan) which raised $850 million DR form. In terms of
industry, issuers from Communications and Financial sectors
accounted for over $2.3 billion (or 47%) of follow-on offerings.
In 2013, overall global equity market capital raisings totaled
$797 billion.
1
Specifically, in the fourth quarter, equity capital
markets (ECM) was quite active with issuers raising $257
billion — the strongest quarter for equity capital raising since
fourth quarter 2010, according to estimates from Thomson
Reuters. The two most notable transactions for 2013 were BB
Seguridade Participacoes SA’s IPO ($5.1 billion) and Facebook
Inc.’s follow-on offering ($3.9 billion).
Despite a lower finish for 2013, we expect a large pipeline of
backlogged deals — both in equity and DR form — to come to
market in 2014.
In 2013, DR capital raisings reached $10.5 billion, a decrease
of $2.0 billion (or 16%) versus prior year. Approximately $5.6
billion (or 54%) was raised through initial public offerings
(IPOs). The EMEA region was at the forefront of overall capital
raising with 17 issuers raising approximately $4.6 billion. The
biggest year-over-year increase came from the Asia Pacific
region which had 25 issuers raise $4.4 billion — up 164%
compared to 2012. The most notable transactions came from
issuers from Russia, Taiwan and China, raising $2.6 billion,
$2.1 billion and $1.4 billion, respectively. In terms of industry,
issuers from the Financial, Communications and Industrial
sectors together accounted for approximately 59% of the
total capital raised.
Although there was a flurry of activity in Q4 2013, the total
amount raised through IPOs decreased by 46% versus
prior year with 26 issuers raising approximately $5.6 billion.
Most of the decrease was due to smaller deal sizes and
postponements of offerings coming to market during the
second half of the year. The most notable DR IPO in 2013 was
TCS Group Holdings (a financial institution from Russia) which
raised $1.1 billion in DR form. In terms of industry, issuers from
the Financial and Consumer (Cyclical) sectors led the way,
raising approximately $2.8 billion of DR capital in IPO form.
2013 Capital Raising
By Type
By Country
By Industry
2
DR Capital Raisings
ADR
52%
GDR
48%
Value: US$10.5 Billion
Others
30%
Columbia
5%
Korea
6%
China
14%
Taiwan
20%
Russia
25%
Value: US$10.5 Billion
Energy
3%
Diversified
4%
Consumer,
Non-Cyclical
5%
Basic Materials
8%
Technology
9%
Consumer,
Cyclical
12%
Industrial
14%
Communications
20%
Financials
25%
Value: US$10.5 Billion
Source: Bloomberg Financial Markets and Depositary Data Interchange
1
Based on estimates from Thomas Reuters.
2
Industry sector classifications as defined by Bloomberg Financial Markets.