#USA #New York #Dealogic #ECM 2024 #Equity Markets

Dealogic's 2024 Full-Year ECM Highlights

Dealogic has unveiled its 2024 Full-Year ECM Highlights, reflecting a year marked by recovery for the global equity capital markets. As the world grapples with rising inflation, higher global interest rates, and geopolitical stresses, the year saw a significant rebound in issuance volumes. Surpassing $741 billion, this figure represents a 20% increase compared to 2023, showcasing a notably strong performance as investors regain confidence in the market.

The Americas, particularly the United States, led this resurgence with a staggering $366.7 billion in issuance, which signifies an increase of over 56% from the previous year. A key contributor to this surge was the ambitious capital raise by Boeing, which accounted for $18.5 billion from a follow-on equity offering and $5.75 billion from convertible bonds in the fourth quarter. Other major players included National Grid, raising $9 billion, and Saudi Aramco, which completed a $12.5 billion share sale. These substantial deals indicate strong market capacity as we gear up for 2025.

In sharp contrast, China faced a staggering 81% decline in ECM volumes amid its own economic slowdown, highlighting a stark divergence in the performance of major economies. However, India emerged as a beacon of growth in the Asia-Pacific region, posting $69.4 billion in ECM transactions—making it the second-best market globally after the US and championing a 122% increase from 2023.

As we look toward the future, the health of the equity capital markets in 2025 remains under scrutiny, particularly in light of the incoming Trump administration's policies. Pro-business measures reminiscent of Trump's first term could provide a favorable environment for ECM growth. Still, the potential introduction of universal tariffs raises concerns of trade disruptions, echoing challenges observed during Trump's prior presidency when increased protectionism led to a notable 15% year-over-year decrease in ECM volumes in 2018. Striking a balance will be imperative for ensuring market stability moving forward.

Samuel Kerr, the Global ECM Editor at ION Analytics, asserted, “This year has been pivotal for the recovery of global equity capital markets, bouncing back from two years of stagnation due to fluctuating inflation and geopolitical tensions. The remarkable surge in the Americas, particularly the US, emphasizes the resilience of market players. As we edge closer to a year that could be influenced heavily by government policies, the market remains cautiously optimistic yet anxious.”

Key Takeaways from the 2024 Full-Year ECM Highlights

• - Global ECM issuance reached $741 billion, up by 20% year-on-year as of early December.
• - Total ECM issuance in the Americas was $366 billion, which is 56% higher than the FY23 figure of $233 billion.
• - The EMEA region experienced a 19.8% increase, totaling $156.5 billion, compared to $130.7 billion in 2023.
• - Global IPO volumes saw a slight rise, totaling $123 billion, driven largely by US market strength, as APAC deals notably lagged due to declines in Chinese transactions.
• - Six out of the top ten largest IPOs originated from the EMEA region, with a notable struggle for mid-cap companies during this period.
• - The APAC ECM sector recorded a decline of 7.9%, heavily influenced by an 83% drop in mainland Chinese equity issuances.

The release of the 2024 Full-Year ECM Highlights report marks a pivotal moment for market observers eager to understand the dynamics of equity capital markets as they move into 2025 and beyond. Investors will be watching closely to see if the promising growth momentum can be sustained or if new policies will alter the landscape significantly.