Goldman Sachs Bests JPMorgan To Grab Largest Equity Underwriting Share In Q1

by Trefis Team
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Global equity capital markets saw a jump in activity over the first quarter of 2017 after enduring a weak 2016, as companies around the globe raised almost $193 billion through IPOs and FPOs for the period – a 10% increase from the $176 billion figure in the previous quarter, and a steep 74% jump from the $111 billion raised a year ago. [1] The recovery was largely fueled by an improvement in equity market conditions in the U.S., as U.S.-listed IPOs for 2016 were at their lowest level since 2003. With U.S. companies going ahead with share issuance plans that they had been delaying since last year, and with Chinese equity capital markets continuing to expand, the number of global equity issuances for the quarter (1,332) were just shy of the record high of 1,333 seen in Q1 1996.

The largest U.S. banks made the most of the improved market conditions to report a sizable increase in their combined market share from under 32% in the previous quarter to almost 35% now.

IB_QA_US_ECMShare_17Q1

Equity underwriting volumes for individual banks were taken from Thomson Reuters’ latest investment banking league tables. It should be noted that the largest equity capital market deals (IPOs and FPOs) employ more than one investment bank, so the market share figures detailed here are not exclusive.

Notably, JPMorgan ceded the top spot in the global equity capital markets to Goldman Sachs despite ranking #1 in equity issuances in the U.S., EMEA (Europe, Middle East and Africa) and Latin America, as Goldman’s strong showing in Asia gave it an edge. In addition to garnering the largest market share of equity issuances in China, Goldman was also the most active foreign bank in the Japanese equity capital markets in the first quarter. This helped the bank oust JPMorgan from the top spot. You can see how changes in Goldman’s share of the equity underwriting industry can impact our price estimate for the bank’s shares by modifying the chart below.

See the links below for more information and analysis about the 5 largest U.S. investment banks:

See full Trefis analysis for Goldman SachsJPMorganMorgan StanleyBank of America | Citigroup

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Notes:
  1. Global Equity Capital Markets Q1 2017, Thomson Reuters Deals Intelligence []
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