In the second half of 2021, the number of equity offerings decreased significantly by 76.2% from the same period in 2020. This is worrying for equity in H2 2021.
This marks a deceleration in growth from the 44.4% decrease in deals that occurred in H1 2021 relative to the same period a year earlier.
During this time, the region that saw the biggest increase in the number of deals was North America.
From the H2 2020 to H2 2021, the largest regional increase in equity deals was also seen in North America.
During second half of 2021, equity offerings accounted for 1.3% of all deals taking place in the sector. This represents a decrease from the figure of 3.9% in second half of 2020.
GlobalData's deals database is a comprehensive repository that looks at mergers, acquisitions, venture financing, equity offerings, asset transactions, partnerships and debt offerings taking place daily between thousands of companies across the world.
The database details key deal information, such as deal summary, deal rationale, deal financials, parties involved, advisors and deal payment modes.
By tracking the proportion of various types of deals in each sector we can gauge which sectors are seeing growth and where others are struggling.
The highest value equity offering announced in 2021 (where the deal value was known), is the funds to be raised by PT Bank Rakyat Indonesia (Persero) (Bank Rakyat Indonesia) in rights offering.
The deal is set to be worth $6,720m.
The database states that the rationale behind this deal was as follows: "PT Bank Rakyat intends to use the proceeds for establishing an ultra-micro holding."