Kuala Lumpur, 22 July 2011

SC Q2 Scorecard 2011: Capital market remains vibrant

Malaysia’s capital market saw a vibrant second quarter buoyed by higher interest in all sectors of the market.

During the second quarter, the Securities Commission Malaysia (SC) had received a total of 45 corporate proposals (35 proposals in Q1 2011), 16 of which were equity applications, while the remaining 29 were for Private Debt Securities (PDS).

Out of the 16 equity applications, ten were Initial Public Offering (IPO) applications with a total potential market capitalisation of approximately RM13.36 billion.

The SC also approved nine IPOs in Q2 which are expected to have a combined potential market capitalisation of RM17.04 billion. The nine approved IPOs are expected to raise a total of RM5.48 billion.

The number of PDS approvals also increased, with 26 approvals this quarter compared to 17 in the first quarter. The total funds approved to be raised from ringgit-denominated PDS increased by 150% to RM34.3 billion in the second quarter of 2011 compared to RM13.7 billion in the first quarter.

Meanwhile, the SC has also approved 31 applications for new collective investment schemes, a marked increase from 16 approved in Q1 2011.  Of the 31 applications for new funds, 14 were for the establishment of new unit trust funds, 16 were for the establishment of wholesale funds and one approval was given for the establishment of a Shahriah-compliant real estate investment trust (REIT).

The SC maintained its strong performance standard with 99.86 percent of licensing applications and 100 percent of the corporate proposals processed within the time charters. A total of 1559 licensing applications were received in the second quarter.

Capital market statistics released by the SC cover information on processing, approvals and rejections of submissions, including timing and reasons. In addition to these scorecard indicators, the quarterly statistics of submissions approved by the SC for the second quarter of 2011 were also reported.

The full series of capital market statistics released by the SC is available here.