London bourse sees record fund raising in May

LONDON (Reuters) - Companies raised a combined 23.2 billion pounds on the London Stock Exchange (LSE.L) in May, the highest level in a single month, thanks to the Royal Bank of Scotland's (RBS.L) jumbo rights issue.

Rights issues from RBS, Imperial Tobacco (IMT.L) and Groupe Eurotunnel (GETPq.L)(GETP.PA) made up 76 percent of the total money raised on the LSE, which was double the previous record of 11.2 billion pounds in July 2006.

"May was dominated by a handful of major rights issues, but it was also a lively month on the IPO market," said Tracey Peirce, head of equity primary markets.

The LSE received its first Mexican IPO, Fresnillo (FRES.L), which raised 913 million pounds in a deal arranged by JPMorgan Cazenove.

The LSE also saw its first Kuwaiti IPO as Global Investment House K.S.C.C. (GLOBGq.L)(GLOB.KW), an asset management and investment banking firm, raised $1.15 billion (586 million pounds) in the first ever global depositary receipt (GDR) offering from the country, which was arranged by HSBC (HSBA.L)(0005.HK).

Some 34 Middle Eastern firms have raised about $5.9 billion on the LSE so far.

However, Thomson Reuters data for the year to May 31, shows the total raised on the LSE's main market dropped 74 percent to $5.6 billion over the same period of last year.

This meant the LSE had slipped behind the Saudi Stock Exchange, which emerged as the world's second busiest market for initial public offerings after the New York Stock Exchange (NYX.N)(NYX.PA).

(Reporting by Daisy Ku; Editing by Richard Hubbard)