Statistics of Submissions Approved by SC for Q3 2004


Corporate Proposals


The Securities Commission (SC) approved 117 corporate proposals in the third quarter of 2004 (Table 1), bringing the total to 321 corporate proposals approved in the first nine months of 2004. This total represents a 24% increase in the number of corporate proposals approved for nine months, based on a year-on-year comparison with 2003.

Table 1: Number of Corporate Proposals Approved


























































Type


Number of Corporate Proposals Approved


Q3 2004


Q2 2004


Q1 – Q3 2004


Q1 – Q3 2003


New listings


27


20


63


47


Capital-raising exercises1


56


51


160


87


Acquisitions


4


10


20


21


Restructuring & reorganizations2


4


3


10


24


Share splits


9


17


33



Employee share option schemes (ESOS)4




1


36


Others3


17


9


34


44


Total


117


110


321


259

1Including 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. 4ESOS no longer require the SC’s approval with effect from February 2004.

Of the 117 corporate proposals approved in the third quarter, 56 were capital-raising exercises, comprising equity issues, private placements, restricted issues, issues of debt securities and issues of irredeemable convertible unsecured loan stocks (ICULS). The number of capital raising exercises approved as at end-September 2004 stood at 160, 84% higher than the total (87) recorded at the end of the corresponding period for 2003.


For new listings, 27 proposals were approved in the third quarter of 2004. This was an increase of 35% from the 20 approvals given in the second quarter. Cumulatively, a year-on-year comparison shows that the number of new listings, totaling 63 for the first nine months of 2004, has risen by 34%.


The SC approved nine share-split applications in the third quarter, about half the number approved in the second quarter.


Private debt securities


The SC approved a total of 25 private debt securities (PDS) issues amounting to RM9.27 billion in the third quarter of 2004 (Table 2). These comprise 15 conventional and 10 Islamic PDS issues, with nominal values of RM5.85 billion and RM3.42 billion, respectively. The conventional PDS issues approved include one asset-backed securities (ABS) issue amounting to RM1.8 billion.


Although the same number of PDS issues were approved in the second quarter of 2004, the nominal value of the issues approved during that period, at RM12.14 billion, was 30.9% higher than the nominal value of the issues approved in the third quarter.

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






































Type


Q3 2004


Q2 2004


Q3 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


151


5,853.82


112


6,886.99


233


3,731.19


Islamic


10


3,420.00


14


5,252.00


4


347.00


Total


25


9,273.82


25


12,138.99


27


4,078.19

1Include one ABS issue amounting to RM1.8 billion.
2Include 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).
3
Include one ABS amounting RM1.31 billion.

The SC approved two structured products transactions worth RM3.35 billion in the third quarter of 2004 as compared to two transactions worth RM1.05 billion in the previous quarter (Table 3).

Table 3: Number of Transactions Relating to Structured Products Approved





























Type


Q3 2004


Q2 2004


No. of transactions


Size of transactions (RM mil)


No. of transactions


Size of transactions (RM mil)


Conventional


2


3,350.00


2


1,049.00


Islamic






Total


2


3,350.00


2


1,049.00


Take-over and Mergers


The SC approved 37 applications under the Malaysian Code on Take-overs and Mergers in the third quarter of 2004 (Table 4), marginally higher than the 36 applications that were approved in the second quarter of this year. Overall, a year-on-year comparison between 2004 and 2003 also showed a drop, of 12.5%, this year.


Five applications for waivers from mandatory offer obligations were approved in the third quarter, as compared to 15 in the previous quarter. Cumulatively, the total number of waivers from mandatory offer obligations granted for the first nine months of 2004 is 7% higher than the corresponding period of 2003.


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




































Type


Number of Submissions Approved


Q3 2004


Q2 2004


Q1 – Q3
2004


Q1 – Q3
2003


Clearance of offer document


8


3


13


11


Application for waiver from mandatory – offer obligation


5


15


45


42


Others1


24


18


61


83


Total


37


36


119


136

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.

Twenty-four 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 42 applications relating to unit trusts and other collective investment schemes in the third quarter of 2004 (Table 5), up a notch from the 41 approved in the second quarter.


The total approvals related to unit trusts and other collective investment schemes comprised eight approvals for establishment of new funds, significantly lower by 62% as compared to the number approved in the second quarter. However, it is noteworthy that a year-on-year comparison shows a substantial increase of 50% in the approvals granted for the establishment of new funds, most likely boosted by the high number of approvals in this category during the second quarter of 2004.


There were also four approvals for increase in fund size and three for exemption/variation from the Guidelines on Unit Trust Funds. The remaining 27 approvals were in relation to applications labeled under “Other applications” (covering extension of time, revaluation of property, change of funds name and change of shareholding structure), which formed the bulk of the total approvals related to unit trusts and collective investment schemes in the third quarter of 2004.

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








































Type


Number of Submissions Approved


Q3 2004


Q2 2004


Q1 – Q3
2004


Q1 – Q3 2003


Establishment of new funds


8


21


42


28


Increase in fund size


4


7


22


24


Exemption/variation from Guidelines 1


3


1


4


12


Other applications2


27


12


55


77


Total

42


41


123


141

1 Excluding applications submitted through the establishment of new schemes.
2 Including applications for extension of time, revaluation of property, change of funds name and change of shareholding structure.



SECURITIES COMMISSION
25 October 2004