Capital market remains sound

—continued interest in IPOs

Kuala Lumpur, 16 October 2008

Amidst the current volatile global financial environment, the Malaysian capital market continues to attract interest in initial public offerings (IPOs). The release today of the Securities Commission’s (SC) scorecard for the third quarter of this year indicates that there is a significant number of IPOs already approved to be listed on the capital market.

The number of new IPOs approved by the SC up to end-September 2008 increased to 29, aided by the addition of 11 new IPOs approved in the latest quarter. Comparatively, there were 26 IPOs approved in total for the whole of 2007.

The third quarter also saw an increase in the number of sizeable companies headed for listing, as reflected by the jump in the number of Main Board-bound companies approved thus far.

Five out of the 11 new IPOs approved are for the Main Board, three for the Second Board, and another three for the MESDAQ Market. The 11 new IPOs cover a diverse range of sectors including oil & gas, services and construction/engineering.

In total, of the 29 IPO submissions approved up to end-September 2008, 13 are Main Board companies compared to nine in 2007. Significantly, six out of the 13 approved Main Board IPOs are by big cap companies with at least RM500 million market capitalisation.

“We are seeing greater interest from larger companies tapping into the capital market to raise funds although the global uncertainty will have a bearing on the timing of new listings,” said SC Chairman Dato’ Zarinah Anwar.

“The Malaysian capital market remains fundamentally sound. We have a strong regulatory framework and internationally-benchmarked standards of corporate governance, risk management and market conduct in place. We will continue to closely monitor developments in the global markets and remain vigilant on the impact of these developments on our market,” added Dato’ Zarinah.

The third quarter also saw a 50% increase in the number of approved transfers to the Main Board, up to six from four in the previous quarter. Four out of the six upward transfers approved in this quarter are by Second Board companies.

The SC maintained its strong performance standards with 98 percent of licensing applications and 92 percent corporate proposals processed within the time charters. A total of 2,747 applications were received for new licences and renewal of licences in the third quarter of 2008.

Capital market statistics released by the SC cover information on processing, approvals and rejections of submissions, including timing and reasons. In addition to these scorecard indicators, the quarterly statistics of submissions approved by the SC for the third quarter of 2008 were also reported.

The full series of capital market statistics released by the SC is set out here.


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