Citigroup Global Markets Korea (CGMK), Citi's investment banking franchise in Korea, claimed the top spot in the Dealogic Korea Investment Banking Wallet League table with a 16 percent market share, the company said Wednesday. The Dealogic wallet rankings measure the share of investment banking fees banks earn on deals, making them a closely watched industry benchmark of underwriting and advisory performance.

According to Dealogic data, Citi raised a total of $60 billion for Korean clients across global debt and equity markets during the first seven months of the year. The financing was carried out through 40 transactions so far this year — an average of more than one deal per week — making it a record year for CGMK. Korean companies have historically relied more on bank loans for corporate funding than their U.S. counterparts, which has made sustained large-scale international issuance from the country a significant source of underwriting business for global banks.

The bank's track record includes a lead role in SK hynix's $26.5 billion offering of American depositary receipts on Nasdaq in July. The transaction was the largest U.S. initial public offering ever completed by a foreign issuer and the largest equity deal ever to emerge from an Asian market, the company said. SK hynix is one of the world's largest memory chipmakers and part of South Korea's SK Group, and American depositary receipts are dollar-denominated securities that allow foreign companies to raise capital from U.S. investors while trading on American exchanges.

Because the Dealogic ranking reflects only the first seven months of the year, the final league table standings will depend on how second-half mandates are executed. Citi expects transaction flow in Korea's investment banking sector to remain active in the second half of the year, with key financings across debt and equity capital markets expected to drive a record year for capital markets issuance from the country.

CGMK said it maintains a strong pipeline and anticipates continued merger and acquisition activity, both inbound and outbound, across sectors including technology, consumer and health care.

"Korea is one of Citi's key markets globally. It is home to a growing class of world-class corporates and emerging champions who are increasingly using capital markets at competitive levels to fund growth ambitions," said Park Jang-ho, CEO of CGMK.

"We also are seeing associated mergers and acquisitions as local corporates go global and increasingly lean into Citi's leading global network for key strategic financings and advisory work," Park added.

Source: The Korea Times