Fund raising activities in Q2 2012 continued to be robust with the Securities Commission Malaysia (SC) receiving a total of 56 applications for equity related proposals and issuances of private debt securities (PDS) in Q2, three times the applications received in Q1 2012.
A total of 42 or 75% were PDS applications, while the remaining 14 or 25% were for equity related proposals. Six applications for Main Market IPOs were received compared to two in Q1 2012. Two IPOs were approved in this quarter, namely Felda Global Ventures Holdings Berhad and IHH Healthcare Berhad.
The debt market in Malaysia remained active with the number of approved PDS applications in Q2 2012 increasing to 24 compared to 16 in Q1 2012. The total amount of funds approved to be raised from ringgit-denominated PDS issues also increased by 4.9% to RM23.01 billion in Q2 2012 compared to RM21.94 billion in Q1 2012.
At the end of June 2012, the total amount of bonds outstanding stood at RM941 billion, reflecting the continued growth of the Malaysian bond market. This amount included USD165.2 billion in sukuk outstanding, which represents two-thirds of the total sukuk outstanding globally of USD243.4 billion.
In 2011, corporate bond issuances in the Malaysian capital market totalled RM70 billion. In the first half of 2012, total corporate bond issuances reached RM66 billion, including PLUS Berhad’s issuances earlier this year of a RM30 billion 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.
Capital market statistics released by the SC cover information on processing, approvals and rejections of applications, including timing and reasons. In addition to these scorecard indicators, the quarterly statistics of applications approved by the SC for the second quarter of 2012 were also reported.
The full series of capital market statistics released by the SC is set out below.
CAPITAL MARKET STATISTICS
SC Scorecard Q2 2012 & Statistics of Submissions Approved by the SC in Q2 2012
A. Corporate Submissions to the SC – Q2 2012
Table 1: Status of Substantive Applications as at 30 June 2012
|
Applications |
Total |
|
Balance brought forward from Q1 2012 |
9 |
|
Add: Applications received in Q2 2012 |
56 |
|
Total applications |
65 |
|
Less: Applications Considered in Q2 2012 |
(34) |
|
Less: Applications Withdrawn in Q2 2012 |
(3) |
|
Balance carried forward to Q3 2012 |
28 |
Table 2: Substantive Applications Considered/Withdrawn in Q2 2012
|
Type of Applications |
Considered |
Withdrawn |
Total |
||
|
Approved |
Rejected |
Returned |
|||
|
Initial Public Offering - Main Market |
2 |
- |
1 |
1 |
4 |
|
Reverse Take-Overs and Restructurings |
1 |
- |
- |
- |
1 |
|
Transfer from ACE Market to Main Market |
1 |
- |
- |
- |
1 |
|
Private Debt Securities |
24 |
- |
1 |
2 |
27 |
|
Cross listing of Malaysian Corporation |
1 |
- |
- |
- |
1 |
|
Others |
3 |
- |
- |
- |
3 |
|
TOTAL |
32 |
- |
2 |
3 |
37 |
Table 3: Processing Turnaround Time for Substantive Applications Considered in Q2 2012
|
Substantive Applications |
Within Time Charter1 |
Exceed Time Charter2 |
Total |
|||
|
No. |
% |
No. |
% |
No. |
% |
|
|
33 |
97 |
1 |
3 |
34 |
100 |
|
(1) The SC time charter for processing is computed from the date of receipt of complete information on the application up to the date of the decision letter, and this is applicable to the following proposals:
Initial public offerings (IPOs) and acquisition of assets resulting in a significant change in the business direction/policy of a listed company: 52 working days;
Large capitalisation IPOs applications and transfer of listing from the ACE Market to the Main Market of Bursa Malaysia: 32 working days; and
Private debt securities: Deemed approval and 14 working days.
(2) Main reasons for exceeding time charter include incomplete submission from the applicant and/or SC’s request for further clarification on certain pertinent issues.
B. Corporate Applications Approved by the SC – Q2 2012
i) Applications Approved
Table 4: Number of Applications Approved
|
Type of Applications |
No. of Applications Approved |
||
|
Q2 2012 |
Q1 2012 |
Q2 2011 |
|
|
Initial Public Offering - Main Market |
2 |
1 |
9 |
|
Reverse Take-Overs and Restructurings |
1 |
2 |
2 |
|
Transfer from ACE Market to Main Market |
1 |
- |
1 |
|
Cross Listing of Malaysian Corporation |
1 |
- |
- |
|
Private Debt Securities (PDS) |
24(1) |
16(2) |
26(3) |
|
Others |
3(4) |
3 |
4 |
|
TOTAL |
32 |
22 |
42 |
(1) 18 Ringgit-denominated issues and 6 foreign currency-denominated issues of conventional PDS and sukuk (Tables 5, 6 & 7).
(2) 12 Ringgit-denominated issues and 4 foreign currency-denominated issues of conventional PDS and sukuk (Tables 5, 6 & 7).
(3) 21 Ringgit-denominated issues and 5 foreign currency-denominated issues of conventional PDS and sukuk (Tables 5, 6 & 7).
(4) Includes offering of equity securities by foreign corporation with no listing on Bursa Malaysia.
ii) Private Debt Securities (PDS)
Table 5: Approved Ringgit-Denominated issues
|
Type |
Q2 2012 |
Q1 2012 |
Q2 2011 |
|||
|
No. of issues |
Size (RM mil) |
No. of issues |
Size (RM mil) |
No. of issues |
Size (RM mil) |
|
|
Conventional PDS |
12 |
12,255.00 |
8 |
10,412.08 |
7 |
9,676.80 |
|
Sukuk |
6 |
10,750.00 |
4 |
11,525.00 |
14 |
24,590.00 |
|
Combination(1) |
- |
- |
- |
- |
- |
- |
|
Total |
18 |
23,005.00 |
12 |
21,937.08 |
21 |
34,266.80 |
(1) Combination of sukuk and conventional notes.
Table 6: Approved foreign currency-denominated issues by foreign corporations
|
Type |
Q2 2012 |
Q1 2012 |
Q2 2011 |
|||
|
No. of issues |
Size |
No. of issues |
Size |
No. of issues |
Size |
|
|
Conventional PDS |
- |
- |
1 |
SGD2.00 billion(2) |
1 |
CNY3.00 billion(2) |
|
Sukuk |
3 |
USD4.15 billion(1) |
3 |
USD4.15 billion(2) |
2 |
USD1.05 billion(2) |
|
Combination |
- |
- |
- |
- |
- |
- |
|
Total |
3 |
USD4.15 billion |
1 |
SGD2.00 billion |
1 |
CNY3.00 billion |
|
3 |
USD4.15 billion |
2 |
USD1.05 billion |
|||
(1) Comprise 1 multi-currency issue amounting to USD3.0 billion and 2 global offerings.
(2) Offerings in Malaysia were part of global offerings.
Table 7: Approved foreign currency-denominated issues by Malaysian Issuers
|
Type |
Q2 2012 |
Q1 2012 |
Q2 2011 |
|||
|
No. of issues |
Size |
No. of issues |
Size |
No. of issues |
Size |
|
|
Conventional PDS |
3 |
USD8.00 billion(1) |
- |
- |
2 |
USD2.50 billion |
|
Sukuk |
- |
- |
- |
- |
- |
- |
|
Combination |
- |
- |
- |
- |
- |
- |
|
Total |
3 |
USD8.00 billion |
- |
- |
2 |
USD2.50 billion |
(1) Multi-currency issues.
iii) Take-Overs & Mergers
Table 8: Number of Applications Considered under the Malaysian Code on Take-overs and Mergers 2010
|
Type |
Number of Submissions Considered |
||
|
Q2 2012 |
Q1 2012 |
Q2 20112 |
|
|
Clearance of offer document 1 |
8 |
7 |
2 |
|
Exemption from mandatory offer obligation |
7 |
5 |
7 |
|
Clearance of independent advice circular |
14 |
8 |
11 |
|
Others3 |
12 |
9 |
8 |
|
Total |
41 |
29 |
28 |
Note:
1. Include clearance of documents relating to scheme of arrangement and selective capital repayment which are considered as take-over offers.
2. Certain comparable figures for Q2 2011 have been restated to conform to the current quarter’s presentation.
3. Include applications for extension of time, ruling, waiver from provisions of the Code, other ancillary applications and related decisions.
iv) Unit Trusts & Collective Investment Schemes
Table 9: Number of Submissions Relating to Unit Trusts and Other Collective Investment Schemes Approved
|
Type |
Number of Submissions Approved |
||
|
Q2 |
Q1 |
Q2 |
|
|
Establishment of new funds |
21 |
14 |
31 |
|
Increase in fund size |
28 |
43 |
21 |
|
Exemption/variation from Guidelines1 |
3 |
1 |
5 |
|
Other applications 2 |
18 |
20 |
17 |
|
Total |
70 |
78 |
74 |
(1) Excludes applications submitted through the establishment of new schemes.
(2) Including applications for change of trustee, extension of time and renewal of trustee’s registration.
v) Applications for Licences
Table 10: Status of Licensing Applications as at 1 April – 30 June 2012 (Q2)
|
New licence application |
Received |
Withdrawn |
Returned |
Considered |
Approved |
Pending |
|
Representative |
345 |
1 |
17 |
327 |
277 |
50 |
|
Corporation |
1 |
0 |
0 |
1 |
0 |
1 |
|
Individual |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total |
346 |
1 |
17 |
328 |
277 |
51 |
Table 11: Processing Turnaround Time for Licensing Applications, 1 April – 30 June 2012 (Q2)
|
New licence application |
|
|||||||
|
Within time charter |
Exceeds time charter |
Subtotal |
Exception |
Total approved |
||||
|
Total |
% |
Total |
% |
Total |
% |
|||
|
Representative |
276 |
99.64 |
1 |
0.36 |
277 |
0 |
0 |
277 |
|
Corporation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Individual |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total |
276 |
99.64 |
1 |
0.36 |
277 |
0 |
0 |
277 |
SECURITIES COMMISSION MALAYSIA
Members of the Media may contact the Corporate Affairs Department at 03-62048595 (Anita Harben), 03-62048305 (Lau Mei San), or fax no.: 03-62015078 or e-mail: cau@seccom.com.my.
Background information:
The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets & Services Act 2007. More information about the SC is available on its website at www.sc.com.my
