Merger and acquisition (M&A) deals involving a Singapore target have totaled US$10.2 billion so far in 2023, marking a significant 70% decrease year-on-year and hitting a decade low. This decline is reflective of the challenging economic environment and uncertainties that have impacted deal-making activities in the region.
According to data from market data provider Refinitiv, investment banking fees generated in Singapore have also seen a decline, falling by 20% year-on-year to US$585.2 million ($799.33 million) in 2023. DBS Group Holdings D05 currently leads the pack with a total of US$73.6 million in fees, capturing a 13% share of the total fee pool.
In terms of advisory fees earned from completed M&A transactions, banks have generated a total of US$183.6 million in the first nine months of 2023, down 32% year-on-year. This downward trend in M&A activity is further reflected in the overall value of announced M&A transactions with Singapore involvement, which totals US$35.0 billion so far this year, a 65% decrease compared to the previous year.
The number of Singapore deals has also declined by 1% over the same period, indicating a slowdown in deal-making activities across the board. Inbound deals have dropped by 66% year-on-year to US$6.9 billion, while domestic deals have fallen by 75% to US$3.3 billion. Singapore outbound M&A transactions have also seen a decline, totaling US$18.0 billion in 2023, down 62% year-on-year and marking a six-year low.
The financial sector remains the most targeted sector in Singapore by value, accounting for 35% of M&A transactions involving a Singapore target so far this year. The high technology sector has recorded the highest number of deals, indicating a diverse range of industries being impacted by M&A activities.
Deutsche Bank currently holds the top spot in the any Singapore involvement M&A financial advisor league table in 2023, with a 17% market share. Additionally, equity capital markets underwriting fees have seen a slight increase of 7% year-on-year, totaling US$122.9 million, while debt capital markets fees have declined by 35% to US$69.7 million.
Singapore equity and equity-related issuance have totaled US$2.9 billion in 2023, a 5% increase compared to the previous year. Follow-on offerings account for 88% of activity, while convertible issuance and IPOs make up 10% and 2%, respectively. Proceeds raised from follow-on offerings have seen a 6% decline year-on-year, totaling US$2.5 billion.
Eight initial public offerings (IPOs) have been recorded so far in 2023, with YKGI raising US$12.7 million in its stock market debut in February, marking the largest Singapore IPO of the year. Citi currently leads the Singapore equity capital markets underwriting league table with a 24% market share, followed by DBS.
Syndicated lending fees have declined by 13% year-on-year to US$209.1 million in the first nine months of 2023. Overall Singapore debt capital markets activity has totaled US$16.7 billion, a 28% decrease compared to the previous year and the lowest nine-month total since 2015. Singaporean companies from the financial sector have raised US$10.7 billion, accounting for 64% of the market, while government and agencies have accounted for a 22% market share.
DBS currently holds the top spot in the Singapore debt capital markets underwriting league table in 2023, with US$2.1 billion of related proceeds, capturing a 12.5% market share. The challenging M&A landscape and declining investment banking fees in Singapore reflect the broader economic uncertainties and market conditions impacting deal-making activities in the region.
