It’s proving a good year to be an equity capital markets banker in Russia.
While ECM business elsewhere in Europe flounders, Dealogic says Russia equity capital markets activity has risen to become the highest proportion of the European total since 2007.
$5.8bn was raised in three transactions this week alone, meaning that Russia now accounts for 8% of European ECM for 2012 year-to-date. Less promisingly, ECM deals by volume have fallen in Russia this year: only 8 deals have been completed, compared to 18 during the same period of 2011.
Needless to say, this year’s biggest IPO has been the Russian government’s sale of a 7.6% stake in Sberbank for $5.2bn. Credit Suisse, Goldman Sachs, JPMorgan, Troika Dialog and Morgan Stanley all worked on the deal. However, only 3% of the deal was on Russia’s Micex exchange, meaning much of the work may have gone to ECM bankers overseas.
In another promising sign for Russia’s ECM bankers, VTB has now said it hopes to achieve a $2bn privatisation by next spring. Less promisingly, VTB also says it’s become more conservative and that the next five years will be hard.
Dealogic says Sberbank tops the Russian ECM league table for 2012 so far, with a 17.5% market share. JPMorgan and Morgan Stanley are in joint second place, with a 17% share each.