Equity fundraising leads the way in applications

Securities Commission Malaysia building at Kuala Lumpur.

PETALING JAYA: The Securities Commission (SC) says equity fundraisings continued to register a higher number of equity applications submitted in 2023, compared with 2022.

Out of the 22 equity applications received by the SC in 2023, nine of which were for initial public offerings (IPOs), two in relation to a proposed acquisition resulting in a significant change of business direction or policy and 11 were for transfer of listings to the Main Market of Bursa Malaysia.

A further seven applications had been brought forward from 2022.

In 2023, the number of corporate bonds and sukuk lodgements remained stable with 64 corporate bonds and sukuk lodgements made with the SC compared to 62 lodgements in the previous year.

Sukuk accounted for 67% of the number of lodgements, as well as 57% of the nominal value in relation to ringgit denominated instruments (sukuk RM98.26bil; total RM171.26bil) and 80% of the nominal value for foreign currency-denominated instruments (sukuk US$40bil; total US$50bil).

The SC also received two corporate bonds applications with a nominal amount of RM0.22bil in 2023, compared to two corporate bonds applications with a nominal amount of RM0.37bil received in 2022. Both applications had been considered and approved at the end of last year.In 2023, the SC considered a total of 62 applications under the Rules on Takeovers, Mergers and Compulsory Acquisitions compared to 77 applications in 2022.

The SC cleared 10 offer documents involving a total offer value of RM5.53bil or an average of RM553.43mil per offer.

This represented an increase of RM3.43bil against the previous year (2022: 18 offers with total offer value of RM2.10bil, averaging RM116.93mil per offer).

The largest offer in 2023 was by Sime Darby Enterprise Sdn Bhd (a wholly owned subsidiary of Sime Darby Bhd) for the remaining shares in UMW Holdings Bhd.

At RM2.27bil in offer value, it accounted for 41% of the total offer value in 2023.

Other notable offers in terms of offer value include the offers by Lembaga Tabung Angkatan Tentera for the remaining shares in Boustead Plantations Bhd at RM1.96bil and in Boustead Holdings Bhd at RM703.25mil.

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