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Follow-ons and Rights issues

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  • Asia’s equity capital market got away to a modest start to the year, with multiple share sales planned across the region for January alone. As ever, issuers will try to bring fundraisings as early as possible, even if that means squeezing into a tight window between now and Chinese New Year. John Loh and Jonathan Breen report.
  • The IPO of Saudi Aramco is likely to remain a top talking point for equity capital markets bankers for much of 2017, but another Saudi deal that is likely to prove more straightforward to bring to market has taken another step forward.
  • With stockmarket secondary trading off to a decent start in 2017, with the FTSE 100 hitting a record high, bankers are busy with a round of pitching and beauty parades that was already under way in December.
  • BDO Unibank has fixed the terms for its Ps60bn ($1.2bn) rights issue, marking a rare — and large — appearance in ECM from the Philippine lender.
  • Foncière des Murs, the French property company controlled by Foncière des Régions, will raise €200m of equity in a rights issue to partly finance its €542m acquisition of a portfolio of 19 Spanish hotels from Merlin Properties.
  • Equity investors have something new to believe in: fiscal largesse in the US kickstarting global growth. That’s good news for the many companies and banks with capital to raise in 2017 — the trouble is, markets are likely to be as volatile as Donald Trump’s temper. By Jon Hay, additional reporting by Aidan Gregory