Tuesday May 1, 2012

Stronger preference for bonds, sukuk

SC: Fifteen of 19 proposals received in Q1 for PDS

KUALA LUMPUR: The Securities Commission Malaysia (SC) received a total of 19 corporate proposals in first quarter of this year, compared with 41 proposals in the preceeding quarter.

In line with the trend of increasing preference for fund-raising through issuance of corporate bonds and sukuk, the majority (79%) of the proposals were for issuance of private debt securities (PDS).

Of the 19 corporate proposals, 15 were for PDS while the remaining four were equity applications, the SC said in a statement yesterday.

Of the four equity applications, two were for initial public offering (IPO), compared with one in the fourth quarter of 2011.

Approved ringgit-denominated sukuk issuances for the quarter under review stood at RM11bil, which reflected an increase from the RM7.7bil registered in the previous corresponding period.

The SC has also approved one IPO, which was expected to raise RM20.4mil from the capital market, and with a potential market capitalisation of RM82mil.

Total amount of funds to be raised from the IPOs and PDS approved in the first quarter is RM21.9bil, compared with RM49bil in the preceeding quarter.

For collective investment schemes, the regulator approved 14 applications to establish new funds in the quarter, compared with 33 in the fourth quarter of last year.

Of the total applications for new funds, five were for the establishment of new unit trust funds and nine were for wholesale funds.

Capital market statistics released by the SC provide information on processing, approvals and rejections of applications, including timing and reasons for rejection.

More details and the full series of capital market statistics can be found on its website.

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