HSBC goes for the big time
HSBC goes for the big time
Harry Wilson 3 Oct 2005
World’s local bank has turned round its equity business
Winning a sole mandate by default to run the flotation of 888.com, the internet gambling company, may not be one of the year’s most prestigious deals, but it underlines the progress HSBC is making in European equity capital markets.
For a company that calls itself the world’s local bank, the gap in its primary equity business has been a source of shame. Over the past three years, HSBC has established a strong presence in the debt markets as a bookrunner of bond deals, but success in equity markets has been elusive. However, a reshuffle of the equity business and a handful of appointments is bearing fruit.
The change began last year, when John Studzinski, head of investment banking at HSBC, appointed Daniel Palmer from Morgan Stanley as global head of ECM, to allow Russell Julius, the previous head, to focus on Europe, Middle East and Africa.
Palmer has spent the past year building his team. In March, he hired three senior bankers, bringing in Paddy Burrowes, deputy head of pan-European equity sales trading at Deutsche Bank, to take charge of the global equity syndicate, as well as George Pavey from Credit Suisse First Boston to lead the bank�s Asian business, and Alex Caramella from UBS to cover financial institutions and southern Europe.
The London float of internet gambling company 888.com was one of the most closely watched equity deals of September, throwing an unusually bright spotlight on its sole bookrunner.
HSBC cannot claim to have won the deal in the most glorious circumstances, only getting the mandate after the original bookrunner, CSFB, dropped out because of US legal concerns over internet gambling.
The growth in HSBC’s business is real enough. This year, the bank has worked on global equity deals totalling $8bn (€6.6bn), over half from its Emea business, where the bank led deals worth $4.3bn; a 184% increase on the same period last year.
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Harry Wilson 3 Oct 2005
World’s local bank has turned round its equity business
Winning a sole mandate by default to run the flotation of 888.com, the internet gambling company, may not be one of the year’s most prestigious deals, but it underlines the progress HSBC is making in European equity capital markets.
For a company that calls itself the world’s local bank, the gap in its primary equity business has been a source of shame. Over the past three years, HSBC has established a strong presence in the debt markets as a bookrunner of bond deals, but success in equity markets has been elusive. However, a reshuffle of the equity business and a handful of appointments is bearing fruit.
The change began last year, when John Studzinski, head of investment banking at HSBC, appointed Daniel Palmer from Morgan Stanley as global head of ECM, to allow Russell Julius, the previous head, to focus on Europe, Middle East and Africa.
Palmer has spent the past year building his team. In March, he hired three senior bankers, bringing in Paddy Burrowes, deputy head of pan-European equity sales trading at Deutsche Bank, to take charge of the global equity syndicate, as well as George Pavey from Credit Suisse First Boston to lead the bank�s Asian business, and Alex Caramella from UBS to cover financial institutions and southern Europe.
The London float of internet gambling company 888.com was one of the most closely watched equity deals of September, throwing an unusually bright spotlight on its sole bookrunner.
HSBC cannot claim to have won the deal in the most glorious circumstances, only getting the mandate after the original bookrunner, CSFB, dropped out because of US legal concerns over internet gambling.
The growth in HSBC’s business is real enough. This year, the bank has worked on global equity deals totalling $8bn (€6.6bn), over half from its Emea business, where the bank led deals worth $4.3bn; a 184% increase on the same period last year.
"
posted by eecalvin @ 6:47 PM
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