Statistics of Submissions Approved by SC for Q1 2005


Corporate Proposals


The Securities Commission (SC) approved 88 corporate proposals in the first quarter of 2005 (Table 1), which represents a drop of 18.5% as compared with the total approvals in the final quarter of 2004 (108 proposals approved).


Table 1: Number of Corporate Proposals Approved1




















































Type


Number of Corporate Proposals Approved


Q1 2005


Q4 2004


Q1 2004


New listings


32


19


16


Capital-raising exercises2


40


65


52


Acquisitions


4


2


6


Restructuring & reorganisations3


1



4


Share splits


2


4


7


Employee share option schemes (ESOS)




1


Others4


9


18


8

Total

88


108


94


1 With effect from 1 January 2005, consideration and approval of listings and corporate proposals on MESDAQ companies are undertaken solely by the SC.
2
Including equity issues, private placements, restricted issues, issues of debt securities and Redeemable Convertible Unsecured Loan Stocks (RCULS).
3
Including debt restructurings.
4
Including bonus issues, transfers to Main Board, disposals of assets, issues of warrants and exercises by unlisted companies.


Although there was a drop in most categories of corporate proposals approved in the first quarter of 2005, there was a significant increase in the number of new listings approved during that period-there was a 68% increase in the number of approvals in this category since the fourth quarter of 2004. A total of 25 or 78% of the approvals for new listing were in relation to the MESDAQ market.


Capital-raising exercises continued to form the bulk of corporate proposals approved in the first quarter of 2005 (45%). However, the number of these proposals approved had fallen by 38% since the fourth quarter of 2004.


Private Debt Securities


The SC approved 16 private debt securities (PDS) issues with a total approved issuance limit of RM3.6 billion in the first quarter of 2005 (Table 2). This number includes one issue of asset-backed debt securities (ABS) valued at RM2.5 billion.

Table 2: Number and Size of Approved Issues Relating to PDS






































Type


Q1 2005


Q4 2004


Q1 2004


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


6


331.15


232


6,141.27


263


13,797.90


Islamic


101


3,301.00


13


2,684.30


12


3,805.00


Total


16


3,632.15


36


8,825.57


38


17,602.90

1 Include one ABS issue amounting to RM2.5 billion.
2
Include one ABS issue amounting to RM500 million.
3
Include three ABS issues amounting to RM850 million and one issue of US Dollar denominated PDS worth USD100 million (or equivalent to RM380 million).

There was a significant drop in the number of PDS issues approved (16) in the first quarter of 2005, which was reflected in the corresponding decrease in the total size of PDS issues approved during that period (RM3.6 billion). 62.5% of the PDS issues approved were Islamic-based PDS, while the remaining 37.5% were conventional PDS.


In addition to the PDS issues by Malaysian issuers, the SC also approved one offer of US dollar-denominated PDS in Malaysia by a foreign issuer valued at USD500 million (or equivalent to RM1.9 billion) in the first quarter (Table 3).

Table 3: Number and Size of Approved PDS Offers by Foreigners in Malaysia






































Type


Q1 2005


Q4 2004


Q1 2004


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


500.00




1


250.00


Total


1


500.00




1


250.00


The SC approved five structured products issues with a total size amounting to RM8.3 billion in the first quarter of 2005 (Table 4).


Table 4: Number and Size of Approved Issues Relating to Structured Products








































Type


Q1 2005


Q4 2004


Q1 2004

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
5


8,349.90


1


1,800.00


1


700.00

Islamic






Total
5


8,349.90


1


1,800.00


1


700.00


Take-overs and Mergers


The SC approved 51 applications relating to the Malaysian Code on Take-overs and Mergers 1998 in the first quarter of 2005 (Table 5), an increase of 10.87% 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 2005


Q4 2004


Q1 2004


Clearance of offer document


9


3


2


Application for waiver from mandatory – offer obligation


10


14


25


Others1


32


20


19

Total

51


37


46


1 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 of 2005, the SC granted 10 approvals for applications for waiver from mandatory-offer obligation. This represented a drop of 28.6% from the number of approved applications in the previous quarter. The SC also cleared nine offer documents in the first quarter of this year as compared with three in the final quarter of 2004.


Unit Trusts and Other Collective Investment Schemes


The SC approved the establishment of eight new funds in the first quarter of 2005. In total, the SC approved 41 applications relating to unit trusts and other collective investment schemes, a small increase compared to the 35 applications recorded in the previous quarter. This is attributable to the consistent rise in the number of approvals granted for each category as compared with the number of approvals in the fourth quarter of 2004.

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


































Type


Number of Submissions Approved

Q1 2005 Q4 2004 Q1 2004

Establishment of new funds


8


11


13


Increase in fund size


9


7


11


Exemption/variation from Guidelines1


1


0


0


Other applications2


23


21


16

Total

41


39


40

1 Excluding applications submitted through the establishment of new schemes.
2
Including applications for extension of time, change in shareholding structure, investment in foreign market and appointment of institutional agents for distribution of unit trusts.

Out of the 41 submissions approved in the first quarter of 2005, 20% were approvals for establishment of new funds, about 22% were for applications for increase in fund size and 2% were approvals for exemption/variation from Guidelines.


In respect of other applications, 56% of the approvals related to extensions of time, changes in shareholding structures, investments in foreign market and appointments of institutional agents for distribution of unit trusts.


Overall, with the exception of applications for establishment of new funds, there was an increase in the number of approvals granted for each category in Table 6 in the first quarter this year, as compared with the number of approvals given during the first and the last quarter of 2004.




SECURITIES COMMISSION
26 April 2005