Statistics of Submissions Approved by SC for Q1 2004


Corporate Proposals


The Securities Commission (SC) approved 94 corporate proposals in the first quarter of 2004 (Table 1), with the number of approved new listings and capital raising exercises continuing to rise.

Table 1: Number of Corporate Proposals Approved

















































Type


Number of Corporate Proposals Approved


Q1 2004


Q4 2003


Q1 2003


New listings


16


10


8


Capital-raising exercises ¹


52


48


38


Acquisitions


6


6


10


Restructuring & reorganizations²


4


8


12


Share splits


7




Employee share option schemes (ESOS)


1


10


16


Others³


8


14


16


Total


94


96


100















¹ Including equity issues, private placements, restricted issues, issues of debt securities and ICULS.
² Including debt restructurings.
³ Including bonus issues, transfers to Main Board, disposals of assets, issues of warrants and exercises by unlisted companies.








Note: With effect from 10 February 2004, proposals on ESOS and bonus issues no longer require prior approval from the SC. The Malaysia Securities Exchange Bhd is currently the one-stop approving authority for ESOS and bonus issues.

A total of 16 new listings proposals were approved in the first quarter of 2004. This was an increase of 60% from the 10 approvals given in the last quarter of 2003 and marked a 100% increase from the number approved during the first quarter last year.


A total of 52 proposals on capital-raising exercises were approved in the first quarter of 2004, comprising approvals given for equity issues, private placements, restricted issues, issues of debt securities and issues of irredeemable convertible unsecured loan stocks (ICULS). They made up slightly more than half (55%) of the approvals given that quarter.


With listed companies being allowed to undertake share splits from 1 December 2003, the SC approved seven proposals on share splits during the first quarter of 2004. The SC only approved one ESOS during that period as the Malaysia Securities Exchange Bhd. became the one-stop approving authority for ESOS from 10 February 2004.


Private debt securities


The SC approved a total of 38 private debt securities (PDS) issues amounting to RM17.6 billion in the first quarter of 2004 (Table 2). This number includes three issues of asset-backed debt securities (ABS) worth RM850 million.

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






































Type


Q1 2004


Q4 2003


Q1 2003


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


26


13,797.90*


23


14,530.68 +


23


13,361.39 #


Islamic


12


3,805.00


16


7,527.00


7


2,785.00


Total


38


17,602.90


39


22,057.68


30


16,146.39













*

Include three ABS issues amounting to RM850 million and one issue of US Dollar denominated PDS worth USD100 million (or equivalent to RM380 million).

+

Include five ABS issues amounting to RM987.9 million.

#

Include one ABS issues amounting to RM300 million.

At 38, the number of approved issues in the first quarter increased by about 27% as compared with the total issues approved in the same quarter last year. Out of these approved issues, 68% comprised conventional PDS issues while the remaining 32% comprised Islamic-based PDS issues.


In addition to the PDS issues proposed by Malaysian issuers, the SC also approved one offer of US Dollar-denominated PDS in Malaysia by a foreign issuer worth USD250 million (or equivalent to RM950 million) in the first quarter (Table 3).

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






































 


Type


Q1 2004


Q4 2003


Q1 2003

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


250.00






Total


1


250.00






Following the release of the Guidelines on the Offering of Structured Products on 10 December 2003, the SC approved one issue of structured products transaction amounting to RM700 million (Table 4).

Table 4: Number of Approved Transactions Relating to Structured Products




















Type


Q1 2004

No. of transactions

Size of transactions (RM mil)


Conventional


1


700.00


Islamic




Total


1


700.00


Take-over and Mergers


The SC approved 46 applications under the Malaysian Code on Take-overs and Mergers in the first quarter of 2004 (Table 5), a marginal drop of 2% as compared with the total submissions approved in the same quarter last year.

Table 5: Number of Submissions Relating to the Malaysian Code on Take-overs and Mergers Approved





























Type


Number of Submissions Approved

Q1 2004

Q4 2003

Q1 2003


Clearance of offer document


2


5


2


Application for waiver from mandatory – offer obligation


25


22


14


Others4


19


28


31


Total


46


55


47


4 Including 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.


In the first quarter this year, over half (54%) of the approvals were for applications for waiver from mandatory-offer obligation and 41% of the approvals were given to other submissions including 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.


Unit Trusts and Other Collective Investment Schemes


The SC approved 40 applications relating to unit trusts and other collective investment schemes in the first quarter of 2004 (Table 6), increases of 21% and 29% as compared with the approvals granted in the first and the final quarter of 2003.

Table 6: Number of Submissions Relating to Unit Trust and Other Collective Investment Schemes Approved


































Type


Number of Submissions Approved


Q1 2004


Q4 2003

Q1 2003

Establishment of new funds


13


12


12


Increase in fund size


11


9


4


Exemption/variation from Guidelines5




4


Other applications 6


16


10


13


Total

40


31


33

5 Excluding applications submitted through the establishment of new schemes.
6
Including applications for extension of time, revaluation of property, change in shareholding structure, and appointment of institutional agents for distribution of unit trusts.

Out of the 40 submissions approved in the first quarter of 2004, 33% were approvals for establishment of new funds and about 28% were for applications for increase in fund size. Forty per cent of the approvals were given to applications relating to extension of time, revaluation of property, change in shareholding structure, and appointment of institutional agents for distribution of unit trusts.


Overall, except for the applications for exemption or variation from Guidelines, there was an increase in the number of approvals granted for each category of Table 6 in the first quarter this year, as compared with the number of approvals given during the first and the last quarters of 2003.



SECURITIES COMMISSION
16 April 2004