The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

ECM: More repair and reconstruction to come

In 2009 corporate issuers are likely to join financials in seeking to push through equity issues aimed at repairing balance sheets. Intricate measures might be needed to attract investors. However, IPOs look set to be less thin on the ground than in 2008 – at least by mid-2009. Peter Koh reports.

EMERGENCY CAPITAL CALLS from distressed issuers were the dominant theme in equity capital markets in 2008. IPOs all but disappeared in the second half of the year, with the number of deals above $100 million falling 91% on the same period in 2007. Overall, the amount of equity raised fell by about 30% to 40% in most regions.

IPOs disappear, as follow on issues dominate

Global ECM issuance 2008 YTD
Source: Dealogic

Balance sheet repair and rescue rights issues look likely to remain the driving force behind transactions in 2009, although financial institutions are likely to find themselves in the company of a larger number of corporate issuers as the need to raise capital trickles down from the financial sector into the real economy. Issuers that do not have particularly compelling investment cases will struggle to find buyers for their shares and might have to consider alternative instruments or find sources of capital outside the regular public equity market.

Cash-strapped companies might also contemplate spin-offs despite low valuations, when an IPO window opens enough to let deals get done.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?