Aramco, Alibaba rescue sluggish 2019 global ECM market


Giant listings by Saudi Aramco (2222.SE) and Alibaba (9988.HK) rescued a sluggish year for equity capital markets (ECM) in 2019 after a string of shelved initial public offerings (IPOs) and share price slumps.
Proceeds from global equity capital markets (ECM) fell 4.7% to $659 billion in 2019, according to Refinitiv data, a figure propped up by state-owned oil giant Aramco’s record-breaking $25.6 billion IPO and Chinese e-commerce giant Alibaba’s $13.5 billion secondary Hong Kong listing. The two deals accounted for 6% of the total raised, with Aramco alone accounting for 15% of global IPO volumes.
Aramco fits the category of large and differentiated deals for which there is an audience but equally it is such a unique asset and a unique situation that it is difficult to read across to other situations, said Gareth McCartney, head of Europe Middle East and Africa (EMEA) ECM syndicate at UBS.

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