Statistics of Submissions Approved by SC


Corporate Proposals


The Securities Commission (SC) approved 93 corporate proposals during the third quarter of 2003 (Table 1), bringing the total number of corporate proposals approved for the year up to September, to 259.

Table 1: Number of Corporate Proposals Approved



























































Number of Corporate Proposals Approved


Type


Q3
2003


Q2
2003


Q1 – Q3 2003


Q1 – Q3 2002


New listings


28


11


47


30


Capital-raising exercises 1


29


20


87


93

Acquisitions

5


6


21


22


Restructuring & reorganisations 2


3


9


24


27


Recapitalisation





1


Employee share option schemes


9


11


36


29


Others 3


19


9


44


53


Total


93


66


259


255














1

Include equity issues, private placements and restricted issues, issues of debt securities and ICULS.

2

Include debt restructurings.

3

Include bonus issues, transfers to Main Board, disposals of assets, issues of warrants and exercises by unlisted companies.

Compared with the second quarter, the number of approvals in the third quarter went up by 41%, from 66 to 93. However, a year-on-year comparison for the total approvals given shows that year 2003 recorded a marginal increase of 1.6% from 255 to 259, with approved capital-raising exercises dominating about one-third for both years.


The number of approved new listings in the third quarter 2003 increased more than two-fold from the second quarter and was one of the key areas which boosted the third quarter’s figures. At 28, it accounted for almost 60% of the total new listings for the year to date (47). From January to end-September 2003, the number of approved new listings went up by 56.7% as compared with the 30 approvals granted during the corresponding period last year.


In the third quarter, the bulk of the approvals given (as in other quarters) still came from submissions for capital-raising exercises. The total of 29 proposals approved for capital-raising exercises comprised approvals given for equity issues, private placements and restricted issues, issues of debt securities and issues of irredeemable convertible unsecured loan stocks (ICULS).


Private Debt Securities


The SC approved a total of 27 private debt securities (PDS) issues worth RM4.08 billion in the third quarter (Table 2) including one issue of asset-backed debt securities (ABS) worth RM1.31 billion. Out of the 27 approved issues, 85% comprised conventional PDS issues whilst the remaining 15% comprised Islamic-based PDS issues.

Table 2: Number of Issues Relating to Private Debt Securities Approved















































Type


Q3 2003


Q2 2003


Q1 – Q3 2003


Q1 – Q3 2002


No. of issues


Size of issues
(RM mil)


No. of issues


Size of issues
(RM mil)


No. of issues


Size of issues
(RM mil)


No. of issues


Size of issues
(RM mil)


Conventional


23 *


3,731.19*


18


3,676.09


64^


20,768.67^


77#


28,253.78#


Islamic


4


347.00


4+


1389.00+


15+


4,521.00+


27


14,489.96


Total


27


4,078.19


22


5,065.09


79


25,289.67


104


42,743.74

















*

Include one ABS amounting RM1.31 billion

+

Include one ABS amounting RM986 million

^

Include two ABS amounting RM1.61 billion

#

Include six ABS amounting RM3.275 billion and seven issues of US Dollar-denominated PDS worth USD1.593 billion (or RM6.055 billion equivalent)

For the period from January to end-September 2003, the approvals granted for proposals relating to PDS issues recorded a decline of 24.0% and 40.8% respectively in terms of the approved number of issues and the size of issues, as compared with the corresponding period last year.


In addition to the PDS issues by Malaysian issuers, the SC also approved one offer of US Dollar-denominated PDS by the Government of Qatar in Malaysia worth USD700 million (or RM2.66 billion equivalent) in the third quarter (Table 3).

Table 3: Number of Approved Private Debt Securities Offers by Foreigners in Malaysia















































Type


Q3 2003


Q2 2003


Q1 – Q3 2003


Q1 – Q3 2002


No. of offers


Size of offers
(USD mil)


No. of offers


Size of offers
(USD mil)


No. of offers


Size of offers
(USD mil)


No. of offers


Size of offers
(USD mil)


Conventional










Islamic


1


700.00




1


700.00




Total


1


700.00




1


700.00




Take-overs and Mergers


The SC approved 44 applications under the Malaysian Code on Take-overs and Mergers in the third quarter of 2003 (Table 4). This brought the number of approvals granted in the first nine months of the year to 136, which reflected an increase of about 25%, compared with the corresponding period last year which saw 109 submissions approved.

Table 4: Number of Submissions Relating to the Malaysian Code on Take-overs and Mergers Approved



































Number of Submissions Approved

Type
Q3 2003


Q2 2003

Q1 – Q3 2003 Q1 – Q3 2002

Clearance of offer document


4


5


11


7


Application for waiver from mandatory-offer obligation


14


14


42


45


Others 4


26


26


83


57


Total


44


45


136


109








4

Include extension of time for despatch of offer documents, appointment of independent advisers, clearance of independent advice circulars and other ancillary applications including requests for rulings.

Similar to the previous quarter, 14 of the approvals granted in the third quarter were for waivers from the mandatory-offer obligation while 26 of the approvals were for extension of time for despatch of offer documents, appointment of independent advisers, clearance of independent advice circulars and other ancillary applications including requests for rulings. The remaining four approved submissions were for clearance of offer documents.


Unit Trusts and Other Collective Investment Schemes


The SC approved 39 applications relating to unit trusts and other collective investment schemes in the third quarter (Table 5). Out of these 39 applications, 10 were for applications to establish new funds; an increase of 66.7% from the six approvals given in the second quarter. On a year-on-year comparison, the number of approvals granted for this category from Jan to end-September 2003 increased by 75% as compared with the corresponding period last year.

Table 5: Number of Submissions Relating to Unit Trusts and Other Collective Investment Schemes Approved









































Number of Submissions Approved


Type


Q3
2003


Q2
2003


Q1 – Q3 2003


Q1 – Q3 2002


Establishment of new funds


10


6


28


16


Increase in fund size


9


11


24


20


Exemption/variation from Guidelines 5


2


6


12


7


Other applications 6


18


46


77


68


Total


39


69


141


111











5

Exclude applications submitted through the establishment of new schemes.

6

Include applications for extension of time, appointment of external fund managers, revaluation of property, change in shareholding structure, and appointment of institutional agents for distribution of unit trusts.

The bulk of approvals (18) in the third quarter, were for applications relating to extension of time, appointment of external fund managers, revaluation of property, change in shareholding structure, and appointment of institutional agents for distribution of unit trusts. These miscellaneous approvals which were significantly lower in this quarter attributed to the overall drop in the total number of applications approved, i.e. from 69 in the second quarter to 39.



SECURITIES COMMISSION
21 October 2003