ME equity issues up 68pc in Q3
Dubai, October 19, 2011
The equity capital markets (ECM) issuance in the Middle East region surged 68 per cent to hit $8.9 billion during the third quarter of 2011 compared to $5.3 billion last year, said a report by Thomson Reuters.
However, this equity issues growth failed to lift overall investment banking fees, which fell 35 per cent from $483.8 million to $316.6 million for same nine month period in 2011, Thomson Reuters said in its third quarter investment banking analysis for ME region.
The review, which was released on Wednesday, examines the performance of the Middle East investment banking industry in the region’s debt and equity capital markets, both conventional and Islamic.
It includes dedicated regional rankings of banks and advisors operating in the Middle East based on their deals and fees.
According to the report, the fees for Mergers and Acquisitions totaled $165.1 million during the first three quarters of 2011, down from $277.48 million last year.
DCM fees dropped 45 per cent to $54.5 million, year-on-year for the first three quarters, while fees from syndicated lending and ECM totaled $33.3 million and $63.7 respectively.
According to the reporrt, Goldman Sachs topped the M&A fee rankings during the first three quarters of 2011 with $14 million.
Russell Haworth, managing director, Middle East & Africa at Thomson Reuters, said, "Combined ECM and DCM fees now make up 37 per cent of total fees, with M&A activity accounting for 52 per cent of that in the Middle East."
"But the gap is closing, revenue from M&A fees has now dropped 41 per cent year-on-year," he added.
Middle East M&A activity reached $7.8 billion, down 48 per cent compared to the first nine months of 2010 when activity totaled $15.1 billion.
The report said real estate was still the most targeted industry in the Middle East with $2.3 billion, 30 per cent of the activity down from $4.5 billion during the first three quarters of 2010.
According to the report, the UAE was the most active country in the Middle East with $2.3 billion, 30 per cent of overall activity, but down from $4.5 billion during the same period in 2010.
BNP Paribas topped the Any Middle Eastern Involvement M&A ranking with $10.1 billion, with Goldman Sachs in second place with $9.3 billion. Bank of America, Merill Lynch, Credit Suisse, HSBC and JP Morgan all shared top spot in the Middle Eastern target M&A rankings, it added.-TradeArabia News Service