Friday August 3, 2012
SC fund raising robust in second quarter
KUALA LUMPUR: Fund-raising activities in the second quarter continued to be robust with the Securities Commission (SC) receiving a total of 56 applications for equity-related proposals and issuances of private debt securities (PDS), three times the applications received in the first quarter, said the SC in a statement.
A total of 42 or 75% were PDS applications, while the remaining 14 or 25% were for equity related proposals, the SC said in a statement. Six applications for Main Market initial public offering (IPOs) were received compared with two in the first quarter. Two IPOs were approved in this quarter, namely Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd.
The debt market in Malaysia remained active with the number of approved PDS applications in the second quarter increasing to 24 compared with16 in the first quarter. The total amount of funds approved to be raised from ringgit-denominated PDS issues also increased by 4.9% to RM23.01bil compared with RM21.94bil in the first quarter.
The SC said that at the end of June, the total amount of bonds outstanding stood at RM941bil, reflecting the continued growth of the Malaysian bond market. This amount included US$165.2bil in sukuk outstanding, which represents two-thirds of the total sukuk outstanding globally of US$243.4bil.
In 2011, corporate bond issuances in the Malaysian capital market totalled RM70bil. In the first half of 2012, total corporate bond issuances reached RM66bil, including PLUS Bhd’s issuances earlier this year of a RM30bil sukuk – the single largest corporate sukuk in the world.
Given this trend, the SC expects to see two consecutive years of record level issuances which augurs well for the Malaysian bond market.