Malaysia is expecting to raise $1.56 billion through Initial Public Offers (IPO) this year a remarkable improvement over a lackluster performance that Bursa Malaysia showed last year with listings worth just over $230 million.
The dearth of IPO’s in the country, also a regional phenomenon, however is expected to improve this year with a pipeline of companies which have expressed their interest for listings, the big ones being Eco World International, Serba Dinamik Holdings Bhd and QSR Brands.
The total capital, through conventional bonds, sukuks, primary and secondary market is expected to be about $23 billion, according to Malaysia’s Securities Commission Chairman Ranjit Ajit Singh who spoke at the sidelines of an event to launch Malaysia’s Islamic Fund and Wealth Management Blueprint on Thursday.
The total capital, through conventional bonds, sukuks, primary and secondary market is expected to be about $23 billion, according to Malaysia’s Securities Commission Chairman Ranjit Ajit Singh who spoke at the sidelines of an event to launch Malaysia’s Islamic Fund and Wealth Management Blueprint on Thursday.
“This year, the drivers will be business needs, infrastructure financing and those sort of aspects. Our job is to continuously ensure that infrastructure and economic financing could be done through the capital market,” he said.
The amount, if not much, is at least a tad improvement over last year’s total capital raised which was recorded at $22.4 billion. In 2016, MYR87 billion was raised in corporate bond issuances and IPO’s while the rest was secured through secondary fundraising.
“The global IPO markets are improving and so is the IPO market (here)…About MYR7 billion ($1.56 billion) is estimated from the IPO segment this year, but that is our estimate,”Singh said.
The country’s capital market regulator expects to raise between MYR90 and MYR 105 billion this year, it said. “So we hope that will drive the equity market story,” Singh pointed out.
Despite the external volatility in the emerging markets, Malaysia, he said, has been very resilient both in terms of equities and bond and Sukuk market, the country has had a strong capital raising.
With just 11 listings in 2016 raising just over $230 million, it is a decline from a good run of listings that the country had seen between 2010 to 2014 when several governments linked companies (GLCs) had boosted its IPO market in oil & gas and commodity sectors. Deal Street Asia
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