According to data from Refinitiv, the world’s largest financial market data providers report total fees collected through investment bankers, equity market underwriting fees have been cut nearly in half from compared to fees collected a year ago. It reached $138.4 million, down 46.4% from last year’s collection.
Completed M&A advisory fees decreased 17.8% year-on-year to $252.1 million, while loan syndication fees decreased 6.2% to $149.9 million in during the first nine months of the year.
Overall trading activity hit a record high of $148 billion, surpassing the previous annual record set in 2018, when it was $132.2 billion. This was mainly due to the merger of HDFC with its subsidiary HDFC Bank in a transaction valued at $60.4 billion, which is the largest domestic transaction on record.
However, debt capital market business underwriting fees held up better and totaled $128 million, still down 10.1% from the same period a year earlier.
The period also saw India overtake China for the first time since 2008 in private equity-backed acquisitions, making it the busiest period ever, with the number of announced deals jumping by 35%.
By value, India captured a 28% market share of private equity-backed acquisitions in Asia-Pacific, while China accounted for 24%. It is the first time since 2008 that India has accounted for a larger market share than China in Asia-Pacific private equity-backed mergers and acquisitions activity, Refinitiv said in a report.
The business street has been led by renewable energy, as companies focus on transitioning to green assets, clean energy and renewables.
The number of IPOs rose 41% year-on-year, making it the busiest first nine months since 2018. However, proceeds were $5.6 billion, or 39% higher. less than a year ago.
Equity capital markets raised $13.5 billion in the first nine months, a 40.8% decline in proceeds, the lowest period since 2016.
Inbound M&As fell 38% to $30.7 billion, while outbound deals hit a four-year high of $8.8 billion, up 82.4% year-on-year.