Global follow-on offerings total USD48.7bn for year-to-date 2010, an increase of 81 per cent compared to the same time last year, according to a report by Thomson Reuters Deals Intelligence.
Issuers in Japan and the US account for nearly 47 per cent of all year-to-date secondary offerings with USD12.1bn and USD10.7bn, respectively.
Offerings in the financial and energy and power sectors account for a combined 67 per cent of global activity this year.
European follow-on activity is up more than four times last year’s totals, bolstered by USD4.3bn in rights offerings, which account for 36 per cent of European follow-on activity this year.
Cross border M&A totals USD84.5bn for year-to-date 2010, a 79 per cent increase over the same period last year. By number of deals, cross border transactions are up just six per cent for the year.
This week’s USD10.7bn bid for Zain Africa by India-based telecom provider Bharti Airtel and Norwegian fertilizer producer Yara International’s proposed acquisition of US-based Terra Industries contributed to the cross-border total, which accounts for 32 per cent of worldwide activity, compared to 24 per cent last year at this time.
According to the report, Simon Property Group’s nearly USD10bn offer to purchase General Growth Properties out of bankruptcy brings the total of real estate M&A for year-to-date 2010 to USD25.7bn, more than double last year’s total. Globally, the transaction ranks as the sixth largest real estate M&A transaction since records began in 1980.
US target real estate transactions total USD11.2bn, or 43 per cent of the worldwide total this year. There have been 85 bankruptcy-related M&A deal this year, compared to 43 at this time last year.
