TOTAL financing via the equity market in 2006 was RM1.92bil, much below the amount raised in previous years.
The reduced attractiveness of equity issues as an avenue to raise funds was due to weak sentiments associated with the Malaysian equity market in the first half of the year.
Other contributing factors were the lower interest rate environment that prevailed throughout the year and the tightening of listing criteria on the Mesdaq market by the Securities Commission.
More companies sought financing through the PDS market.
The main board remained the most significant avenue for listing on Bursa Malaysia, accounting for 73.8% of the total funds raised, compared with second board (12.4%) and the Mesdaq market (13.8%).
Did you find this article insightful?