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|
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|
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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