Kuala Lumpur, 16 January 2009

SC: Sustained fund-raising interest in 2008

The Securities Commission (SC) approved 31 Initial Public Offering (IPO) applications throughout 2008. In comparison, 26 IPO applications were approved in 2007. The Malaysian capital market continued to attract the interest of companies seeking to raise funds in 2008 despite the weakened IPO markets worldwide.

Out of the 31 approved IPOs, ten have already been listed on Bursa Malaysia – four each on the Main Board and MESDAQ, and two on the Second Board. The remaining 21 are timing their listings to take into account the current uncertain market environment after receiving extension of time from the SC. They are expected to raise RM2 billion and represent a potential market capitalisation of RM6.5 billion.

In addition, the final quarterly scorecard released by the SC for the year 2008 reveals that the total amount of capital to be raised from private debt securities (PDS) issues tripled to RM49.9 billion in the fourth quarter, from RM15.5 billion in the previous quarter. The total amount of fund to be raised from PDS issues approved this year is RM139.9 billion.

Overall, the 31 approved IPOs cover a diverse range of sectors including oil & gas, services, technology and construction/engineering. Seven out of these are big cap companies with at least RM500 million market capitalisation.

The SC maintained its strong performance standards with 100 percent corporate proposals and 97.7 percent of licensing applications processed within the time charters. A total of 1,193 applications were received for new licences and renewal of licences in the fourth quarter of 2008.

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 fourth quarter of 2008 were also reported.

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

SC Scorecard Q4 2008