Singapore investment banking activities generated US$630.1 million ($903.49 million) in fees for 9M2022, down 27.9% y-o-y. This is according to Refinitiv’s Singapore Investment Banking Review for 9M2022, a report of investment banking activities here for the first nine months of the year.
Advisory fees for completed mergers and acquisitions (M&A) amounted to US$226.7 million so far this year, down 16.4% y-o-y.
Meanwhile, equity and equity-linked (ECM) underwriting fees reached US$115.6 million, down 42.9% y-o-y. Debt capital markets (DCM) underwriting fees are 15.3% lower from a year ago, amounting to US$112.9 million so far this year, while syndicated lending fees generated US$174.9 million, 34.6% lower y-o-y.
Based on preliminary data, DBS currently takes the lead in Singapore’s investment banking fees so far this year with a total of US$76.5 million taking 12.1% wallet share of the total fee pool.
Refinitiv is a London Stock Exchange Group business. It is one of the world’s largest providers of financial markets data and infrastructure.
Equity capital markets
ECM issuance by Singaporean companies raised US$2.7 billion so far this year, down 76.5% in proceeds.
Initial public offerings (IPO) by Singaporean companies saw seven listings worth US$62.5 million so far this year, down 94.5% in proceeds y-o-y.
After the Singapore Exchange (SGX) introduced its Spac listing framework, three Spac IPOs were launched in Singapore so far this year, raising an aggregate total of US$280.3 million.
Follow-on offerings fell 63.3% y-o-y, raising US$2.7 billion in proceeds.
Real estate accounted for 79.9% of Singapore’s ECM proceeds, followed by Industrials and materials with 11.4% and 4.5% market share respectively.
DBS currently leads Singapore’s ECM underwriting rankings, with a 62.6% market share and US$1.7 billion in related proceeds, based on preliminary data.
Debt capital markets
See also: What does it really mean to De-Spac?
Primary bond offerings from Singapore-domiciled issuers raised US$23.6 billion so far this year, a 31.5% decline after witnessing a strong period during the first nine months of 2021, says Refinitiv.
Singaporean companies from the financial sector captured 56.5% market share and raised US$13.3 billion so far this year, down 27.7% y-o-y.
Government and agencies followed behind with 22.5% market share worth US$5.3 billion, down 12.6% from a year ago.
Industrials rounded out the top three sectors raising US$1.8 billion, down 35.6% and accounted for 7.4% market share.
ESG-related (green, social, sustainability and sustainability-linked) bonds from Singaporean issuers raised US$5.7 billion, down 7.4% y-o-y and accounted for 24.1% of the total Singapore-issued bond proceeds so far this year.
DBS leads the Singapore-issued bonds underwriting with US$3.45 billion in related proceeds, capturing 14.6% market share, based on preliminary data.
Mergers and acquisitions
Overall, Singapore M&A activity reached US$89.1 billion so far this year, down 33.7% compared to the first nine months of 2021.
The pending acquisition of Store Capital Corp by GIC and Oak Street Real Estate Cap in a US$13.8 billion transaction is currently the biggest deal involving Singapore so far this year.
Singapore-targeted M&A activity amounted to US$32.0 billion, a 57.1% decline y-o-y. Singapore deal making activity saw five de-Spac transactions so far this year worth US$3.4 billion, including the US$1.5 billion deal between Ethereal Tech and Arisz Acquisition Corp.
Domestic M&A in Singapore totaled US$11.8 billion so far this year, down 38.8% from a year ago. Inbound M&A activity in Singapore saw US$20.1 billion worth of deals, down 63.5% in value y-o-y.
According to Refinitiv, the US was the most active acquiror by deal value, taking up 42.6% of the market share. Outbound M&A activity by Singaporean companies reached US$37.2 billion in deal value, up 1.9% y-o-y, with the US as the most targeted nation by value capturing 44.7% market share.
The majority of the deal-making activity involving Singapore targeted the real estate sector, accounting for 28.8% market share and totaled US$25.7 billion, a 22.6% decline in value y-o-y.
Financials, along with energy and power, captured 23.9% and 13.8% market share respectively. High-technology, which saw the most number of transactions, represented 12.2% market share.
Citi currently leads among Singapore involvement-announced M&A based on preliminary data, with 28.9% market share and US$25.8 billion in related deal value.