Kuala Lumpur, 30 April 2012

SC Scorecard Q1 2012: Malaysian companies continue to tap private debt market

The Securities Commission Malaysia (SC) received a total of 19 corporate proposals in Q1 2012 as compared to 41 proposals in Q4 2011. In line with the trend of increasing preference for fund-raising through issuance of corporate bonds and sukuk, the majority (79%) of the proposals were for issuance of private debt securities (PDS).

Out of the 19 corporate proposals, 15 were for PDS while the remaining four (i.e. 21%) were equity applications. Out of the four equity applications, two were for IPO, as compared to one in Q4 2011.

Approved ringgit-denominated sukuk issuances in Q1 2012 stood at RM11 billion, which reflects an increase from the RM7.7 billion registered in the same quarter last year.

The SC also approved one IPO in Q1 2012, which is expected to raise RM20.4 million from the capital market, with a potential market capitalisation of RM82 million.

Total amount of funds to be raised from the IPO and private debt securities approved in Q1 2012 is RM21.9 billion, compared to RM49 billion in Q4 2011.

For collective investment schemes, the SC approved 14 applications to establish new funds in Q1, as compared to 33 in Q4 last year. Out of the total applications for new funds, five were for the establishment of new unit trust funds; nine were for wholesale funds.

Capital market statistics released by the SC provide information on processing, approvals and rejections of applications, including timing and reasons for rejection. Click here to view more details and the full series of capital market statistics.