Kuala Lumpur, 2 August 2012

SC Scorecard: Robust fund raising activities in Q2 2012

Fund raising activities in Q2 2012 continued to be robust with the Securities Commission Malaysia (SC) receiving a total of 56 applications for equity related proposals andissuances of private debt securities (PDS) in Q2, three times the applications received in Q1 2012.

A total of 42 or 75% were PDS applications, while the remaining 14 or 25% were for equity related proposals. Six applications for Main Market IPOs were received compared to two in Q1 2012. Two IPOs were approved in this quarter, namely Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd.

The debt market in Malaysia remained active with the number of approved PDS applicationsin Q2 2012 increasing to 24 compared to 16 in Q1 2012. The total amount of funds approved to be raised from ringgit-denominated PDS issues also increased by 4.9% to RM23.01 billion in Q2 2012 compared to RM21.94 billion in Q1 2012.

At the end of June 2012, the total amount of bonds outstanding stood at RM941 billion, reflecting the continued growth of the Malaysian bond market. This amount included US$165.2 billion in sukuk outstanding, which represents two-thirds of the total sukuk outstanding globally of US$243.4 billion.

In 2011, corporate bond issuancesin the Malaysian capital market totalled RM70 billion. In the first half of 2012, total corporate bond issuances reached RM66 billion, including PLUS Berhad’s issuances earlier this year of a RM30 billion sukuk – the single largest corporate sukuk in the world. Given this trend, the SC expects to see two consecutive years of record level issuances which augurs well for the Malaysian bond market.

Capital market statistics released by the SC cover information on processing, approvals and rejections of applications, including timing and reasons. In addition to these scorecard indicators, the quarterly statistics of applications approved by the SC for the second quarter of 2012 were also reported.

Please click here to view the full series of capital market statistics released by the SC.