For the first time since 2014, the award for Asia’s best investment bank goes to Goldman Sachs.
It was a tight decision. Goldman held a slight edge in equity capital markets, Morgan Stanley in advisory. Goldman was stronger in China, Morgan in India; Goldman in Australia, Morgan in Japan.
ECM and China ultimately tipped the balance Goldman’s way. All capital raising and advisory was important during this most stressful of years, but generally it was equity raisings that saved companies or moved them into positions of leadership. Goldman was on the deals that mattered – and the ones that got completed – and frequently appeared to be getting the best economics on them too.
There are a dozen examples in China alone: Lufax’s $2.36 billion IPO, a deal which gained new perspective when Ant was axed just weeks later; a $4 billion dual-tranche deal for Xiaomi; IPOs for KE Holdings, CR Mixc and Li Auto; Hong Kong secondaries for Yum China, ZTO Express, Shimao Services, Zai Lab and Huazhu; and A-share private placements on the mainland for Oriental Yuhong and Lens Tech. That mainland securities domestic joint venture, finally moving to full Goldman ownership, is proving very useful.
The $2.96 billion NYSE follow-on for Sea, followed by a $1.15 billion convertible, was among the most significant transactions in southeast Asia during the review period, along with the Tiga IPO, which constitutes one of the first special purpose acquisition companies (Spacs) in Singapore to be listed in New York.
Other deals of significance included multiple roles for SoftBank in Japan, lead left on the Coupang IPO in Korea, and a joint lead role on the Reliance Industries $7 billion rights issue.
Goldman also had an impressive year in M&A advisory. The $57.8 billion sale of PetroChina’s pipeline business to PipeChina was this year’s example of the domestic deal that blew up the league tables, but there was so much more besides. The $5 billion recapitalization of Cathay Pacific stood out, while regional highlights outside Greater China included Bain/Virgin in Australia, Hitachi/ABB in Japan and Hindalco/Aleris in India.
Goldman is a slightly weaker proposition on the debt side, but still holds its own, particularly in technology, media and telecoms. The standout deal was a $6 billion multi-tranche Rule 144a/Reg S deal for Tencent.
The last of the 1MDB settlements finally puts that whole episode in the rear-view mirror. Todd Leland and recently promoted investment banking co-head Iain Drayton preside over a successful business. After seven years, Goldman is back at the top in Asia.
