Morgan Stanley Claims Top Spot In Global Equity Underwriting For Q2

by Trefis Team
Morgan Stanley
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Global equity capital markets retained their growth trajectory for the second quarter of the 2017, as improving market conditions resulted in companies around the globe raising more than $207 billion through IPOs and FPOs for the period – an 8% increase from the $193 billion figure in the previous quarter, and 16% higher than the $178 billion raised a year ago. While 2016 was a notably poor quarter for equity underwriting services globally, the improvement seen in 2017 has primarily been driven by a jump in U.S.-listed IPOs. The number of global equity issuances for the quarter (1,403) nudged higher from the already elevated figure for Q1 (1,333) – making the first half of 2017 the best period for the industry in terms of number of equity deals in two decades.

The improved market conditions helped the largest U.S. banks increase their market share to almost 36% in Q2 2017 – the highest since Q1 2015.

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, Morgan Stanley captured the top spot in terms of total equity underwriting deals closed for the quarter after ranking #4 among these banks in Q1 – effectively trading places with Goldman Sachs, which fell to #4 in the list from #1 in the previous quarter. Morgan Stanley did well around the globe, as it worked on more deals (in terms of total value) than any of its peers in the U.S., EMEA (Europe, Middle East and Africa) and Asia Pacific. You can see how changes to Morgan Stanley’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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