PRESS RELEASE


Statistics of Submissions Approved by SC for Q2 2004


Corporate Proposals


The Securities Commission (SC) approved 110 corporate proposals in the second quarter of 2004 (Table 1), making it a total of 204 exercises approved in the first half of 2004. The 204 exercises approved represents a 23% increase in the number of corporate proposals approved for six months, based on a year-on-year comparison with 2003.


Table 1: Number of Corporate Proposals Approved





























































Type


Number of Corporate Proposals Approved


Q2 2004


Q1 2004


Q1 – Q2 2004


Q1 – Q2
2003


New listings


20


16


36


19


Capital-raising exercises 1


51


52


103


58


Acquisitions


10


6


16


16


Restructuring & reorganizations 2


3


4


7


21


Share splits


17


7


24



Employee share option schemes (ESOS)4



1


1


27


Others 3


9


8


17


25


Total


110


94


204


166

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.
4
ESOS no longer require the SC’s approval with effect from February 2004 .

Of the 110 corporate proposals approved in the second quarter, 51 were capital-raising exercises, comprising equity issues, private placements, restricted issues, issues of debt securities and issues of irredeemable convertible unsecured loan stocks (ICULS).


For new listings, 20 proposals were approved in the second quarter of 2004. This was an increase of 25% from the 16 approvals given in the first quarter. It is noteworthy that a year-on-year comparison shows 89% more new listings approved this year.


The SC approved 17 share-splits applications in the second quarter – a more than two-fold rise from seven approvals in the first quarter.


Private debt securities


The SC approved a total of 25 private debt securities (PDS) issues amounting to RM12.14 billion in the second quarter of 2004 (Table 2). These cover both conventional and Islamic PDS.


The 11 conventional PDS issues approved, with a nominal value of RM6.89 billion, include one asset-backed securities (ABS) issue amounting to RM1.5 billion and two US Dollar denominated PDS with a total nominal value of USD550 million (RM2.09 billion).


Overall, compared with the first quarter of 2004, both the number of issues and the value had declined, from 38 issues with a nominal value of RM17.60 billion to 25 issues with a nominal value of RM12.14 billion.

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







































Type



Q2 2004



Q1 2004



Q2 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


11


6,886.991


26


13,797.902


18


3,676.09


Islamic


14


5,252.00


12


3,805.00


4


1,389.003


Total


25


12,138.99


38


17,602.90


22


5,065.09


1 Include one ABS issue amounting to RM1.5 billion and two issues of US Dollar denominated PDS worth USD550 million (or equivalent to RM2.09 billion).
2 Include three ABS issues amounting to RM850 million and one issue of US Dollar denominated PDS worth USD100 million (or equivalent to RM380 million).
3 Includes one ABS issue amounting to RM986 million.


The SC approved two transactions of conventional structured products worth RM1.05 billion in the second quarter of 2004 as compared to one transaction worth RM700 million in the previous quarter (Table 3).

Table 3: Number of Transactions Relating to Structured Products Approved






























Type



Q2 2004



Q1 2004



No. of transactions

Size of transactions
(RM mil)



No. of transactions

Size of transactions
(RM mil)


Conventional


2


1,049.00


1


700.00


Islamic






Total


2


1,049.00


1


700.00


Take-over and Mergers


The SC approved 36 applications under the Malaysian Code on Take-overs and Mergers in the second quarter of 2004 (Table 4), a drop of 22%, from 46 applications approved in the first quarter this year. Overall, a year-on-year comparison between 2004 and 2003 also showed a slight drop this year.


The number of approvals given for waivers from mandatory offer obligations dropped 40% to 15 approvals in the second quarter from 25 in the first quarter. However, half-year comparison between 2004 and 2003 showed an increase of 42% in the number of approvals from 28 in the first half of last year to 40 in the first half of this year.

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



































Type



Number of Submissions Approved


Q2 2004


Q1 2004

Q1 – Q2
2004

Q1 – Q2
2003


Clearance of offer document


3


2


5


7


Application for waiver from mandatory – offer obligation


15


25


40


28


Others1


18


19


37


57


Total


36


46


82


92


1Including 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.


Eighteen submissions, or half the total submissions related to the Malaysian Code on Take-overs and Mergers, 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.


Unit Trusts and Other Collective Investment Schemes


The SC approved 41 applications relating to unit trusts and other collective investment schemes in the second quarter of 2004 (Table 5). There was a marked increase of over 60% in the number of approvals for new funds in the second quarter, with the SC approving 21 submissions for new funds between April to June, compared to only 13 in the first quarter. The establishment of new funds represented half the number of submissions approved in the second quarter.


However, comparing the first and second quarter statistics, there was a drop in the number of approvals for applications to increase fund sizes. The SC approved 11 applications in the first quarter compared to seven in the second quarter. There was also a drop in approvals given for applications under other applications.


Year-on-year comparisons of the total number of applications for unit trusts and other collective schemes for the first half 2004 showed a decline of some 20% from 2003’s half yearly figures. The SC approved a total of 81 applications for unit trust and other collective schemes for the first half of 2004 compared to 102 for the same six months last year.


The decline could be attributed to the drastic drop of more than half the number of applications labeled under “Other applications” (covering extension of time, revaluation of property, registration of trustee and appointment of institutional agents for distribution of unit trusts).


This was despite an almost a doubling of approvals for the establishment of new funds this year compared to the previous year – from a total of 18 for the first six months of 2003 to 34 for the same period this year.

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








































Type


Number of Submissions Approved


Q2
2004


Q1
2004


Q1 – Q2
2004


Q1 – Q2
2003


Establishment of new funds


21


13


34


18


Increase in fund size


7


11


18


15


Exemption/variation from Guidelines1


1



1


10


Other applications 2


12


16


28


59


Total

41


40


81


102


1Excluding applications submitted through the establishment of new schemes.


2Including applications for extension of time, revaluation of property, registration of trustee and appointment of institutional agents for distribution of unit trusts.




SECURITIES COMMISSION
19 July 2004