European corporates are set to test the depth of investors’ pockets this year as they compete for capital with banks that may have to come cap in hand to shareholders for the second or third time.

Follow-on share offerings by financials accounted for 54% of all equity capital market activity in Europe last year, as companies in the sector raised $110.2bn (€81.3bn), 67% more than in the previous year, according to data provider Dealogic. By contrast, there was a 51% decline in secondary offerings by non-financial companies in Europe, which together raised only $56.7bn in 2008, a sign that the re-equitisation process in these sectors is just beginning.