DealZone

Keeping score: Brazilian IPOs and Russian M&A

October 9, 2009

Highlights from the Thomson Reuters Investment Banking Scorecard:

· CHINA, BRAZIL & US ACCOUNT FOR 80% OF IPOs
Banco Santander (Brasil) SA raised $7.0 billion in an initial public offering in New York and Sao Paulo, marking the largest IPO by a Brazilian company on record and the second largest IPO this year behind an offering from China State Construction Engineering, which raised $7.3 billion in July.
Global initial public offerings for year-to-date 2009 total $59.4 billion, a 35% decline from last year at this time.  Despite a flurry of recent offerings, nearly 80% of IPOs this year, by proceeds, have come from companies based in China, Brazil and the United States.

· ACQUISITIONS BY RUSSIAN COMPANIES DOWN 53%
An $11.7 billion bid by Russia’s Vimpelcom for Kyivstar, a Ukrainian provider of wireless telecommunications services partly owned by Norwegian state-owned Telenor ASA ranked as the week’s biggest deal and the largest acquisition by a Russian company this year.
Overall, worldwide M&A totals $1.5 trillion for year-to-date 2009, a 38% decline over last year.  Acquisitions by Russian companies total $28.6 billion so far this year, a decrease of 53% compared to 2008.

· JAPANESE FOLLOW-ONS REACH $35.6 BILLION
In its second common stock offering this year, Nomura Holdings Inc, raised $5.1 billion, marking the third largest Japanese follow-on offering this year behind Sumitomo Mitsui Financial Group ($9.4 billion) and Mizuho Financial Group ($5.9 billion).
The volume of follow-on offerings in Japan totals $35.6 billion for year-to-date 2009, nearly eight times greater than the volume seen during year-to-date 2008.  Capital raising by financial issuers dominates the market this year, accounting for 77% of total issuance.

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