As rights issues reached a record high in the cash-strapped Asian region during the first half of 2009, Singapore companies took the lion's share of the rights issue pie with 64.8 percent of the $9.8 billion (RM34.3 billion) raised, according to data from Thomson Reuters.
DBS Group Holdings and CapitaLand Limited accounted for about $3.9 billion of the rights issue activity, more than a third of the $9.8 billion raised from 94 deals in the region over the last six months.
The bank and property developer took second and ninth place respectively on Thomson Reuters' ranking of the top 10 equity and equity-related deals done in Asia, excluding Japan and Australia.
In January, DBS raised S$4 billion (RM9.6 billion) in a fully subscribed rights issue while CapitaLand added S$1.84 billion to its coffers in a pre-emptive move in March, anticipating bargains in future mergers and acquisitions.
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| The Merlion statue is pictured in front of silhouetted buildings in Singapore's financial district at dusk May 19, 2009. Singapore will announce its first quarter GDP figures on Thursday. (Reuters) |
To date, five real estate investment trusts have turned to rights issues to raise cash this year.
Where all equity and equity-related deals were concerned, H1 2009 was relatively quieter, with $41.7 billion changing hands, a 31.9 percent drop from the corresponding period in 2008.
Between them, firms from China, Singapore and South Korea held a 70.3 percent share of the total regional activity.
Globally, H1 2009 saw an 8.4 percent increase in equity and equity-related deals, but a 17.4 percent decrease in dollar volume year-on-year to $329.9 billion.
US issuers led the equity deal market with a 35 percent share at $115.4 billion.
Despite the flurry of equity activity, global initial public offerings were hit hard this year.
Only 117 issues took place and raised $13 billion, making H1 2009 the slowest period since the second half of 1990, in terms of dollar value.
While some companies looked to investors to help shore up balance sheets, the Asian debt market was still very much in play over the last six months.
According to Thomson Reuters, Asian currency-denominated bonds also hit a record high of $147.4 billion in H1 2009. Leading the pack of issuers were China, South Korea and India.
Chinese yuan-denominated debt in particular reached $60.3 billion in 154 deals, a 258.2 percent increase in proceeds year-on-year.
http://www.themalaysianinsider.com/index.php/business/31138-singapore-firms-take-lions-share-of-rights-pie-in-asia
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