Statistics of Submissions Approved by SC for Q1 2005
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
1 With effect from 1 January 2005, consideration and approval of listings and corporate proposals on MESDAQ companies are undertaken solely by the SC.
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
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
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
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
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
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.
26 April 2005