2002 equity volumes fall almost a third
Global ECM volume fell 29% from 2001 levels to $308.1 billion in 2002 according to financial data services provider Dealogic. Goldman Sachs retains its place as top bookrunner in global ECM for the eighth year in a row.
Global IPO volume fell 36% to $55.6 billion, with the Europe Middle East and Africa (EMEA) region the worst hit. EMEA IPO volumes collapsed 66% to just $10.9 billion. In the US the number of deals fell more modestly from 86 to 82, but at $24.4 billion the combined dollar value of those offerings was 37% down from the 2001 level of $38.7 billion.
IPO volumes have been battered by poor equity market conditions, low valuations, and widespread IPO-related scandals at some of the biggest investment banks. In the Asia Pacific region IPO issuance increased 19% to $18 billion helped by a burst of activity from Taiwan and Hong Kong, which produced the largest increases in IPO activity in the world. The dollar volume of IPO issuance was up 113% and 29% in Taiwan and Hong Kong respectively.
The convertibles market was badly hit by the numerous credit scandals of 2002 and by the volatility of corporate credit spreads, especially in Europe.