Powered by

 November 7, 2017
 Written by Andrew Gorton, Dealogic Research

Companies listed on Italian exchanges, especially Borsa Italiana, have raised the highest volume since 1999 and set a record high for activity.

Borsa Italiana has a great year

Italy-listed companies have raised $24.4bn so far in 2017, the highest YTD volume in 18 years. The previous high was in 1999, when $25.5bn was raised via 26 deals with help from ENEL’s $17.4bn IPO—which remains the largest EMEA-listed IPO on record and the 8th largest globally. Volume this year was aided by another massive deal, UniCredit’s $13.7bn rights issue in Q1. Activity had an even better year, and set a new YTD record high with 58 deals in 2017, surpassing 55 seen in 2014 YTD.

Regulation helps small- and mid-cap companies

Boosted by changes in Italian regulation this year, which led to the creation of Individual Saving Accounts (PIRs), ECM volume for small- and mid-cap companies jumped to $1.1bn raised via 26 deals this YTD.* This volume almost doubled from 2016 YTD and reached the highest since 2007 YTD ($1.7bn), while activity was the highest since 2000 YTD (29 deals).

PIRs are exempt from income tax if investments remain for at least 5 years and at least 70% of assets are financial instruments of Italian companies. A further requirement is that at least 30% of that 70% is invested in instruments of small- or mid-cap Italian companies, which has led to an increased demand for securities from these companies.

 

Small- and Mid-cap Italy-listed ECM Bookrunner Rankings
 Pos.  Bookrunner Volume  Deals  Share
 1 Intesa Sanpaolo $239m   3 21.6%
 2 Mediobanca $204m   4 18.5%
 3 Intermonte SIM $139m   3 12.6%
 4 Equita SIM $125m   2 11.3%
 5 Credit Suisse $93m   3 8.4%

 

Goldman Sachs takes the lead

Goldman Sachs leads the bookrunner ranking for all Italy-listed ECM so far this year with an 8.3% market share, followed by UniCredit (7.6%) and Mediobanca (6.9%). However, for small- and mid-cap companies listed in Italy, all four top spots are Italian banks, headed by Intesa Sanpaolo with a 21.6% market share.

 

Italy-listed ECM Bookrunner Rankings
 Pos.  Bookrunner Volume  Deals  Share
 1 Goldman Sachs $2.0bn    7  8.3%
 2 UniCredit $1.9bn   13  7.6%
 3 Mediobanca $1.68bn   12  6.9%
 4 JPMorgan $1.66bn    7  6.82%
 5 Morgan Stanley $1.65bn    8  6.79%

 

Contact us for the underlying analysis on Italian ECM, or learn more about the Dealogic platform.

Data source: Dealogic, as of November 6, 2017

*For this analysis, small- and mid-cap companies are defined as those with a market capitalization below $500m