UBS is expecting ECM volumes to increase in 2014 supported by activity in the IPO market, secondary block trades and funding for M&A activity. In 2013 equity capital markets are set to record a total volume of around $24 billion which is 15% up on 2012. IPO activity is expected to remain strong in 2014 despite soft performances from recent listings such as Nine and Dick Smith. UBS ECM executive director Richard Sleijpen says investor support is strong for growth businesses, particularly where the investment case offers a unique exposure that is hard to get through existing listed companies. On the M&A front UBS notes the rising occurrence of contested takeover bids as well as demerger transactions. Anthony Sweetman, head of corporate advisory, says demergers tend to be well received and there are a number of large listed companies that could benefit from he increased focus they provide. (VIEW LINK)
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