International Equities: Issue now – before the next crisis

Investors are shunning emerging markets and wary that the US market is a bubble about to burst. With interest rates low, that makes European equities so much more attractive. But issuers know it could all go horribly wrong. They are rushing to the market before investor sentiment turns sour. And increasingly, as Antony Currie reports, the deals they want executed are block trades, secondary offerings and equity-linked bond deals, not the blockbuster privatizations that were once the mainstay of the market.

The primary market’s Swiss saviour

In the pipeline: international equity issues planned for 1999
Issuer Country Sector Issue type Amount ($m) Date
Deutsche Telekom Germany Telecom Secondary 4,000 Q1
Unicredito Italiano Italy Banks Secondary 4,000 Q1
Potugal Telecom Portugal Telecom Secondary 1,500 Q1
Amadeus Global Travel Spain Software IPO 1,000 Q1
United Pan EU Communications Netherlands Telecom IPO 500 Q1
Software Germany Software IPO 500 Q1
Indra Spain Electronics IPO 500 Q1
Air France France Airline IPO 500 Q1
Navion Norway Oil & Gas IPO 400 Q1
H Lundbeck Denmark Pharmaceuticals IPO 400 Q1
Continental Germany Autos Secondary 300 Q1
Superdiplo Spain Retail Secondary 250 Q1
General Optica Spain Retail IPO 240 Q1
ICO Luxembourg Telecom IPO 200 Q1
Transportes Azcar Spain Transport IPO 160 Q1
ENCE Spain Pulp & paper IPO 150 Q1
Antenna Greece Media IPO 100 Q1
Crédit Lyonnais France Banking IPO 4,000 Q2
Deutsche Bank Germany Banking Secondary 2,700 Q2
Monte dei Paschi di Siena Italy Banking IPO 2,000 Q2
Iberia Spain Transport IPO 2,000 Q2
Agfa Germany Industrial IPO 2,000 Q2
Aerospatiale France Aerospace IPO 2,000 Q2
Turk Telekom Turkey Telecom IPO 1,800 Q2
Debitel Germany Telecom IPO 1,750 Q2
Telecom Eireann Ireland Telecom IPO 1,500 Q2
Morphosys Germany Biotech IPO 700 Q2
Austrian Airlines Austria Transport Secondary 300 Q2
Elexis Germany Engineering IPO 300 Q2
Bank Hapoalim Israel Banking IPO 300 Q2
Austria Tabak Austria Tobacco Secondary 250 Q2
Egypt Telecom Egypt Telecom IPO 250 Q2
Euronav Belgium Transport IPO 200 Q2
Elexis Elektroholding Germany Engineering IPO 200 Q2
CPN / Plock Poland Oil & Gas IPO 200 Q2
Sabroe Denmark Manufacturing IPO 150 Q2
Lugrace Spain Real Estate IPO 150 Q2
Estonian Telecom Estonia Telecom IPO 150 Q2
Cintra Spain Transport IPO 150 Q2
Orascom Hotel Holdings Egypt Leisure IPO 100 Q2
Juventus Italy Leisure IPO 100 Q2
Ameriyah Cement Egypt Industrial IPO 100 Q2
Telia Sweden Telecom IPO 3,000 H2
Telnor Norway Telecom IPO 1,000 H2
Cantrell & Cockrane Ireland Beverages IPO 1,000 H2
Airtel Spain Telecom IPO 1,000 H2
Turkish Airlines Turkey Airline IPO 500 H2
HPT Croatia Telecom IPO 500 H2
Logista Spain Tobacco IPO 450 H2
Telefónica Publicidad e Información Spain Telecom IPO 400 H2
Steierische Energie Holding Austria Utility IPO 400 H2
Neopost France Industrial IPO 400 H2
INA Croatia Oil & Gas IPO 200 H2
Harrys France Bakery IPO 150 H2
Podravka Croatia Food & drink IPO 50 H2
LOT Poland Airline IPO 50 H2
Aeroporti di Roma Italy Airport IPO 1,000 Not known
Tote UK Leisure IPO 900 Not known
Belgacom Belgium Telecom IPO 300 Not known
TAP Portugal Transport IPO 200 Not known
CIECH Poland Chemicals IPO 69 Not known
Stinnes Germany Transport IPO Not known
Ducati Italy Motorcycle IPO Not known

Source: Salomon Smith Barney

Last year was a watershed in European equity markets,” says Michael Anderson, head of international equity capital markets at Donaldson Lufkin & Jenrette’s London office.

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