Switzerland

Credit Suisse shares closed 2.7% higher on Wednesday after the bank confirmed what had been widely expected: it will conduct its second rights issue in 18 months, and scrap its plan to float its Swiss Universal Bank.

Credit Suisse beat analysts’ expectations and posted a net profit in the first quarter of 2017, while the bank finally ended uncertainty about its capital position, and the possible IPO of its Swiss unit, by announcing plans for a Sfr4bn rights issue.

This week, two large, highly anticipated Swiss rights issues have gone live. One to end capital concerns, and the other to finance an acquisition.

Swiss Prime Site, LGT Bank and the City of Zurich took advantage of a quiet market, placing Swiss franc bonds with domestic investors before Easter holidays.

Credit Suisse and UBS have strengthened their grip in their home market, but with Switzerland leading Europe’s cross-border M&A revival, they face stiff competition from ambitious foreign rivals, writes David Rothnie.

The year's biggest IPO so far in EMEA has also proved one of its most successful. Galenica Santé, the Swiss pharmacies group, attracted over 1,000 investors, priced at the top of its range and rose 10% on its debut.

Swiss steelmaker Schmolz + Bickenbach opened the euro high yield market on Monday with a sub-benchmark sized deal, extending March’s stream of opportunistic refinancing deals.

Galenica Santé, the Swiss retail pharmacies unit of Galenica Group, has increased the size of its IPO and will price it near the top of its initial range.

Shares in Cosmo Pharmaceuticals, the Swiss pharmaceutical company focused on gastrointestinal and skin disorders, fell 6.4% on Friday after a group of pre-IPO shareholders sold 9.3% of the company for Sfr216m through an accelerated bookbuild led by Berenberg.

The IPO of Galenica Santé, the retail pharmacies unit of the Swiss pharmaceutical group Galenica, was covered throughout its price range by Tuesday morning, less than two working days into the bookbuild.

Credit Suisse may be about to bow to investors’ wishes and give up the idea of floating its Swiss Universal Bank, opting instead for a capital increase, which could come as an accelerated deal. A statement may come on Friday when the bank publishes its annual report.

UBS jumped into the dollar market this week with its first deal of the year as spreads tightened following the Federal Reserve’s move to increase interest rates.