Statistics of Submissions Approved by SC for Q2 2005



Corporate Proposals


The Securities Commission (SC) approved 100 corporate proposals in the second quarter of 2005 (Table 1), which represented a 13.6% increase from the number of corporate proposals approved in the first quarter. The total number of corporate proposals approved stood at 188 at the end of the first half of 2005.



Table 1: Number of Corporate Proposals Approved





























































Type

Number of Corporate Proposals Approved
Q2 2005 Q1 2005 1H2005 1H2004
New listings
16


32


48


36

Capital-raising exercises 1
58


40


98


103

Acquisitions
7


4


11


16

Restructuring & reorganizations 2


1


1


7

Share splits
6


2


8


24

Employee share option schemes (ESOS)




1

Others 3
13


9


22


17

Total
100


88


188


204

1   Including equity issues, private placements, restricted issues, issues of debt securities and Redeemable Convertible Unsecured Loan Stocks (RCULS).
2
  Including debt restructurings.
3 Including bonus issues, transfers to Main Board, disposals of assets, issues of warrants and exercises by unlisted companies.

In the second quarter of 2005, approvals for new listings dropped to 16 as compared to 32 in the previous quarter. Notwithstanding this, a year-on-year comparison shows that the total of number of new listings proposals of approved for the first half of 2005 (48 new listing proposals) was 33.3% higher than the corresponding period of 2004 (36 new listing proposals). The bulk of the new listings approved in the first half of 2005 were in relation to the MESDAQ market, which formed 77% (37) of the total approvals granted for new listings.


Capital-raising exercises continued to lead the type of corporate proposals approved for the second quarter of 2005, as was the case for the previous quarter. The number of proposals for capital raising approved in the second quarter of 2005 had increased by 45.0% to 58, from 40 in the first quarter of 2005. 


Private Debt Securities


The SC approved a total of 33 private debt securities (PDS) issues (excluding issuance by Cagamas Berhad) amounting to RM16.8 billion in the second quarter of 2005 (Table 2). This number includes two issues of asset-backed debt securities (ABS) worth RM1.6 billion. Eighteen of these approvals were for issuance of Islamic securities while the remaining 15 approvals were for issuance of conventional PDS representing 54.5% and 45.5% of total approvals for PDS, respectively. The number of approved PDS issues in the second quarter increased by 43.5% from the total PDS issues approved in the same quarter last year.


 

Table 2: Number and Size of Approved RM-denominated PDS Issues






































 
Q2 2005


Q1 2005


Q2 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


151


3,482.05


6


331.15


94


4,796.99


Islamic


182


13,345.00


103


3,301.00


14


5,252.00

Total

33


16,827.05


16


3,632.15


23


10,048.99

1    Include two ABS issues amounting to RM1.6 billion.
2    Include one Islamic securities issue by a Multilateral Development Bank amounting to RM2 billion.
3
   Include one ABS issue amounting to RM2.5 billion.
4    Include one ABS issue amounting to RM1.5 billion.

The SC approved a total of seven PDS issues by Cagamas Berhad (Cagamas) amounting to RM980 million in the second quarter of 2005 (Table 3). Five of these approvals were for issuance of conventional PDS while the remaining two approvals were for issuance of Islamic securities representing 71.4% and 28.6% of approvals for Cagamas PDS issues, respectively.


 

Table 3: Number and Size of Approved PDS Issues by Cagamas






































 

Q2 2005


Q1 2005


Q2 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


780.00




3


1,435.00


Islamic


2


200.00


2


200.00



Total

7


980.00


2


200.00


3


1,435.00


The SC had also approved two issues of foreign currency-denominated PDS by Malaysian issuers valued at USD600 million in the second quarter of 2005 (Table 4), as well as two offers of foreign currency-denominated PDS by foreign issuers valued at USD2.5 billion in the second quarter (Table 5).


Table 4: Number and Size of Approved Foreign Currency-denominated PDS Issues by Malaysian Issuers






































 
Q2 2005


Q1 2005


Q2 2004


No. of issues


Size of issues (USD’mil)


No. of issues


Size of issues (USD’mil)


No. of issues


Size of issues (USD’mil)


Conventional


2


600.00




2


550.00


Islamic







Total

2


600.00




2


550.00


Table 5: Number and Size of Approved PDS Offers by Foreign Issuers in Malaysia






































 
Q2 2005


Q1 2005


Q2 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


1


1,500.00






Islamic


1


1,000.00


1


500.00



Total

2


2,500.00


1


500.00




The SC approved five programme issuance of structured products with a total size of up to RM6.3 billion in the second quarter of 2005 as compared to two programme issuance  of up to RM1 billion in the same quarter last year (Table 6).


 

Table 6: Number and Size of Approved Programme Issuance of Structured Products






































 
Q2 2005


Q1 2005


Q2 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


6,299.90


5


8,349.90


2


1,049.00


Islamic







Total

5


6,299.90


5


8,349.90


2


1,049.00



Take-over and Mergers


The SC approved 35 of the 39 applications considered under the Malaysian Code on Take-overs and Mergers (TOM Code) in the second quarter of 2005 (Table 7). The number of approvals for such applications represented a decrease of 2.7% as compared with the total submissions approved in the same quarter last year.


Of the total number of approvals granted for applications in relation to the TOM Code in the second quarter of 2005, 31.4% were for waiver applications from mandatory-offer obligation while another 60.0% were for 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.


Table 7: Number of Approved Submissions Relating to the Malaysian Code on Take-overs and Mergers

































Type
Number of Submissions Approved


Q2  2005


Q1  2005


1H 2005


1H 2004

Clearance of offer document
3


9


12


5

Application for waiver from mandatory – offer obligation
11


10


21


40

Others1
21


32


53


37

Total
35


51


86


82

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.


Unit Trusts and Other Collective Investment Schemes


The SC approved 77 applications relating to unit trusts and other collective investment schemes in the second quarter of 2005 (Table 8). This second quarter saw a significant increase of 175.0% in the number of new funds approved, with the SC approving 22 submissions for new funds between April to June, as compared to eight in the first quarter.


The collective investment scheme industry also saw further growth through the approvals of new types of schemes.  The SC approved the first real estate investment trust under the revised Real Estate Investment Trusts Guidelines issued on 3 January 2005. The first exchange traded fixed income fund in Malaysia was also approved pursuant to the Guidelines on Exchange Traded Funds issued on 21 June 2005.  In the second quarter of 2005, the SC also approved the listing of a closed-end fund.

Table 8: Number of Approved Submissions Relating to Unit Trust and Other Collective Investment Schemes








































Type


Number of Submissions Approved


Q22005


Q12005


1H2005


1H2004

Establishment of new funds 22 8 30 34
Change in fund size 17 9 26 18
Exemption/variation from Guidelines 1 3 1 4 1
Other applications 2 35 23 58 28
Total 77 41 118 81
1   Excluding applications submitted through the establishment of new schemes.
2
 Including applications for extension of time, revaluation of property, registration of trustee and appointment of institutional agents for distribution of unit trusts.

A comparison of first and second quarter statistics also shows that there has been an increase in the number of approvals for applications on change in fund sizes with the SC approving 17 applications in the second quarter, as compared to nine in the first quarter.


Year-on-year comparisons of the total number of applications for unit trusts and other collective investment schemes for the first half 2005 showed a substantial increase of almost 45.7% from 2004’s half-yearly figures. The SC approved a total of 118 applications for unit trust and other collective investment schemes for the first half of 2005 as compared to 81 for the first half of 2004.


With the exception of application for establishment of new funds, there was an increase in the number of approvals granted for each category in the second quarter this year, as compared with the number of approvals given during the second quarter of 2004.




SECURITIES COMMISSION
28 July 2005