GlobalData’s latest report, ‘Quarterly Equipment and Services Capital Raising Review – Q2 2018’, shows that global raising activity in the equipment and services sector totalled $10.9bn in Q2 2018. This was a decrease of 48% from the $20.8bn in capital raising deals announced in Q1 2018. On the volume front, the number of capital deals decreased by 12% from 102 in Q1 2018 to 90 in Q2 2018.
A year-on-year comparison shows a substantial increase of 82% in capital raising value in Q2 2018, when compared to Q2 2017’s value of $6bn. The quarter recorded 27 capital raising deals with values greater than $100m, together accounting for $9.6bn.
Capital raising, through debt offerings, witnessed a decrease of 53% in deal value, recording $6.7bn in Q2 2018, compared to $14.4bn in Q1 2018. Capital raising, through equity offerings, registered a decrease of 25% in deal value, with $4bn in Q2 2018, compared with $5.3bn in Q1 2018. Further, 21 private equity/venture capital deals, with a combined value of $293.6m, were recorded in Q2 2018, compared to 20 deals of a combined value of $1.1bn in Q1 2018.
One of the top deals of Q2 2018 was CEVA Logistics’ initial public offering (IPO) of 29.86m shares, at a price of US$28.7 per share, for gross proceeds of $855.6m. In addition, the company granted the underwriters an over-allotment option to purchase up to 2.5m shares, exercisable within 30 calendar days after the first day of trading on the SIX Swiss Exchange.
The company listed its shares on the SIX Swiss Exchange. Credit Suisse AG, Morgan Stanley, Deutsche Bank AG, UBS Investment Bank, Joh. Berenberg Gossler & Co KG, HSBC Holdings Plc, and Vontobel acted as book-runners to the company for the offering. The company intends to use the proceeds from the offering to accelerate the execution of its growth and margin expansion strategy by strengthening the balance sheet.
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Image: Equipment and Services Capital Raising Deal Value and Count, Q2 2018. Credit: Deals Analytics, GlobalData Oil and Gas.
Regionally, Americas led the global capital raising market in terms of volume and deal value, with 49 deals worth a combined value of $6.4bn, in Q2 2018. The Europe Middle East and Africa accounted for 32% of the global capital raising deals in Q2 2018, with 29 deals of a combined value of $4bn; while Asia-Pacific accounted for 13% of global deals, with 12 deals worth a combined value of $568.5m.