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Tuesday, 24 October 2017

The Post-Loterias ECM League Table of Shame

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The glass half-full analysis of European corporate IPOs is that a handful of issues priced successfully in July and just two deals have failed since the latter stages of that month – first family-owned drinks producer Sorgenti Emiliane Modena’s €43.4m float and then the rather more eye-catching €6.24bn sale of Loterias last week.

Those that might be expected to take a glass half-empty position point out that, bearing in mind those two deals and the many that never even launched, the glass has fallen on the floor, smashed into tiny pieces and is ready to shred the feet of any that dare enter the market. The metaphor may fall apart under analysis, but the sentiment is clear.

Before Loterias was pulled, advisers acknowledged that there had been an attempt by at least some of the joint global co-ordinators to get the three joint bookrunners – Citigroup, Deutsche Bank and Morgan Stanley – demoted to junior bookrunner status, a nonsense term designed simply to strip them of league table credit.

The official documentation said joint books, the briefing note prepared by JGCs said junior books. The spat was ignored by most, but let’s give those six greedy banks their moment in the sun – by updating the schadenfraudegasm league table of shame.

With Loterias credit given to just the six JGCs, JP Morgan retains its ignominious 2011 pole position but with an increased margin and lost league table credit of US$4.3bn, followed by Goldman Sachs (US$2.9bn and up from third) and Credit Suisse (US$2.6bn and up from 4th). The benefit for Citigroup, Deutsche and MS is substantial with the former two dropping to 10th and 14th.

 

 

League table of all cancelled deals in 2011
(with six bookrunners on Loterias)

RankBookrunnerNumber of dealsProceeds (US$m)
1JP Morgan84334.9 
2Goldman Sachs72891.1 
3Credit Suisse62558.6 
4UBS41782.8 
5Morgan Stanley81712.7 
6BBVA21601.4 
7Santander21601.4 
8BNP Paribas51598.5 
9Bank of America Merrill Lynch51136.4 
10Citigroup51125.9 
   26836.7 

 

 

League table of all cancelled deals in 2011
(with nine bookrunners on Loterias)

RankBookrunnerNumber of dealsProceeds (US$m)
1JP Morgan83862.2 
2Morgan Stanley82658.1 
3Goldman Sachs72418.4 
4Credit Suisse62085.9 
5Citigroup52071.4 
6Deutsche Bank41615.0 
7BNP Paribas51598.5 
8UBS41310.1 
9Bank of America Merrill Lynch51136.4 
10BBVA21128.7 
11Santander21128.7 
   26836.7 

 

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