Follow-on offerings in Asia Pacific ECM listings down by 12.2 percent in first half of 2014

It’s the lowest start since 2011.

Follow-on offerings, which accounted for 62.5 percent of the ECM listings in Asia Pacific, dropped to US$54.7 billion worth of proceeds in the first half of 2014, marking a 12.2 percent decline compared to the same period last year.

According to the Asia Pacific M&A Preliminary Review for First Half of 2014 by Thomson Reuters, this is the lowest first half since 2011, when US$51.1 billion was generated.

Meanwhile, Common Stock offerings, which are combined IPO and Follow-ons, increased by 2.6 percent from the first half of 2013 to US$79 billion from US$77 billion.

These offerings also witnessed the highest-first six-month period since 2011 when proceeds amounted to US$103.3 billion, according to Thomson Reuters.

The report also noted that the total amount raised from stake sell downs of Asian shares through block trade reached US$13.2 billion, down 21.2% from the first half of 2013 (US$16.8 billion) as number of issues fell 23.0%.