GlobalData’s latest report, Quarterly Equipment and Services Capital Raising Review – Q3 2018, shows that global raising activity in the equipment and services sector totalled $16bn in Q3 2018. This was a significant increase of 45% from the $11bn in capital raising deals announced in Q2 2018. On the volume front, the number of capital deals decreased by 24% from 92 in Q2 2018 to 70 in Q3 2018.
A year-on-year comparison shows an enormous increase in capital raising value in Q3 2018, when compared to Q3 2017’s value of $6.1bn. The quarter recorded 24 capital raising deals with values greater than $100m, together accounting for $15.4bn.
Capital raising, through debt offerings, witnessed an increase of 10% in deal value, recording $7.3bn in Q3 2018, compared to $6.7bn in Q2 2018. Capital raising, through equity offerings, registered a significant decrease of 64% in deal value, with $1.5bn in Q3 2018, compared with $4bn in Q2 2018. Further, 26 private equity/venture capital deals, with a combined value of $7.2bn, were recorded in Q3 2018, compared to 22 deals of a combined value of $293.6m in Q3 2018.
One of the top deals of Q3 2018 was Vistra Energy’s private placement of 5.5% senior notes, due 2026, for gross proceeds of $1bn. The placement was subscribed to by qualified institutional buyers. The notes are fully and unconditionally guaranteed by some of Vistra Energy’s current and future subsidiaries. The company intends to use the proceeds from the placement to purchase the already issued bonds, and for general corporate and working capital purposes.
Equipment and services capital raising deal value and count, Q3 2018
Source: Deals Analytics, GlobalData Oil and Gas © GlobalData
Regionally, Americas led the global capital raising market in terms of volume, with 46 deals, representing 65% of global deals, in Q3 2018. EMEA region led the capital raising market in terms of value, with a 59% share totalling $9.7bn from 19 deals, in Q3 2018, while Asia-Pacific accounted for 8% of global deals, with six deals worth a combined value of $1.6bn.