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Follow-ons and Rights issues

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  • At the end of last year, equity capital market bankers foresaw two obstacles to issuance in the first half of 2015: the Easter weekend on April 3-6, and the UK general election on May 7. The pace of IPO pricings this week appears to confirm that these events are governing deal timing.
  • Bank of America Merrill Lynch has filled its top ECM syndicate role in Asia Pacific by moving Akram Zaman to Hong Kong from New York, sources said.
  • China’s investment banks have leapt up the rankings in Asia ex-Japan’s equity capital market, even as some rivals beat a hasty retreat from the region. Their willingness to be cut-throat on fees and a higher risk tolerance have allowed them to thrive in Asia’s ultra-competitive ECM landscape.
  • Bank issuers have dominated Europe's equity capital markets this week, with important capital raisings by Commerzbank and Permanent TSB, and more to come. But a wealth of corporate deals is also getting done.
  • Shareholders of Joy City Property gave the thumbs up to its one-for-two rights issue to raise HK$6.40bn ($825.80m), with the company closing books on an offering that was 105.9% covered.
  • The Irish state is on course to recover its full investment in Permanent TSB – formerly Irish Life & Permanent – the bank it rescued in 2011, after a highly successful share sale brought in major investors from the US and UK. According to one analysis, the government has already broken even.