Sustained interest in the market continued in the first quarter of 2011 with the Securities Commission Malaysia (SC) receiving a total of 35 substantive applications compared with 27 in the previous quarter.
Four out of the 35 applications were for initial public offerings (IPOs) with a total potential market capitalisation of approximately RM3.72 billion.
The SC approved an IPO application from a China-based company during the quarter with a potential market capitalisation of about RM1.10 billion. Higher interest was seen in the bond market where 17 debt securities proposals were approved in this quarter, more than double the eight approvals in the same period last year.
Compared with Q1 last year, the RM-denominated Sukuk market this quarter saw significant interest with the SC approving five sukuk issuances amounting to RM7.77 billion. This is a stark contrast to the two approved during the same period last year, which amounted to only RM0.590 billion.
The SC maintained its high performance standards with 96 percent of corporate proposals and 99.84 percent of licensing applications processed within the time charters. A total of 1,390 licence applications were received in Q1 2011. The encouraging number of new entrants (206) into the market at the start of the year sets the stage for vibrant growth of the market, both in terms of quantity and quality of the players.
Capital market statistics released by the SC cover information on processing, approvals and rejections of submissions, including timing and reasons. In addition to these scorecard indicators, the quarterly statistics of submissions approved by the SC for the first and the fourth quarters of 2010 were also reported.
The full series of capital market statistics released by the SC is set out below.
New Page 1
CAPITAL MARKET STATISTICS
SC Scorecard Q1 2011
&
Statistics of Submissions Approved by SC in Q1 2011
A. Corporate Submissions to the SC – Q1 2011
Table 1: Status of Substantive Applications as at 31 March 2011
Applications |
Total |
Balance brought forward from Q4 2010 |
7 |
Add: Applications received in Q1 2011 |
351 |
Total applications |
42 |
Less: Applications Considered/Withdrawn in Q1 2011 |
(24) |
Balance carried forward to Q2 2011 |
18 |
(1) Including one re-application which was deferred in the previous quarter.
Table 2: Substantive Applications Considered/Withdrawn in Q1 2011
Type of proposals |
Considered |
Withdrawn
|
Total |
||
Approved |
Rejected |
Returned1 |
|||
Initial public offering - Main Market |
1 |
- |
1 |
- |
2 |
Reverse Take-Overs and Restructurings |
- |
- |
- |
1 |
1 |
Transfer to Main Market |
- |
- |
- |
- |
- |
Private debt securities |
17 |
- |
1 |
- |
18 |
Others2 |
3 |
- |
- |
- |
3 |
TOTAL |
21 |
- |
2 |
1 |
24 |
(1) Main reasons for the returned applications were poor standards of submissions, such as non-compliance with guidelines.
(2) Offering of equity securities by foreign corporations with no listing on Bursa Malaysia .
Table 3: Processing Turnaround Time for Substantive Applications Considered in Q1 2011
Substantive Applications |
Within Time Charter1 |
Exceed Time Charter |
Total |
|||
No. |
% |
No. |
% |
No. |
% |
|
22 |
96 |
1 |
4 |
23 |
100 |
(1) The SC time charter for processing is computed from the date of receipt of complete information of 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 to the Main Market of Bursa Malaysia : 32 working days; and
· Private debt securities applications: Deemed approval and 14 working days.
Table 4: Status of Licensing Applications in Q1 2011
Type of licence application |
Received |
Withdrawn |
Returned |
Considered |
Approved |
Rejected |
Pending |
Representative |
|
|
|
|
|
|
|
New |
266 |
5 |
13 |
248 |
203 |
0 |
45 |
Renewal |
1,069 |
0 |
4 |
1,065 |
1,050 |
0 |
15 |
Corporation |
|
|
|
|
|
|
|
New |
9 |
0 |
0 |
9 |
3 |
0 |
6 |
Renewal |
46 |
1 |
2 |
43 |
37 |
0 |
6 |
Individual |
|
|
|
|
|
|
|
New |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Renewal |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Total |
1,390 |
6 |
19 |
1,365 |
1,293 |
0 |
72 |
Table 5: Processing Turnaround Time for Licensing Applications in Q1 2011
Type of licence application |
|
|||||||
Within time charter |
Exceeds time charter |
Subtotal |
Exception |
Total Reported |
||||
Total |
% |
Total |
% |
Total |
% |
|||
Representative |
|
|
|
|
|
|
|
|
New |
199 |
99.50 |
1 |
0.50 |
200 |
3 |
1.48 |
203 |
Renewal |
1,049 |
99.90 |
1 |
0.10 |
1.050 |
0 |
0 |
1,050 |
Corporation |
|
|
|
|
|
|
|
|
New |
3 |
0 |
0 |
0 |
3 |
0 |
0 |
3 |
Renewal |
32 |
100 |
0 |
0 |
32 |
5 |
13.51 |
37 |
Individual |
|
|
|
|
|
|
|
|
New |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Renewal |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Total |
1,283 |
99.84 |
2 |
0.16 |
1,285 |
8 |
0.62 |
1,293 |
B. Corporate Submissions Approved by the SC – Q1 2010
i) Proposals Approved
Table 6: Number of Corporate Proposals Approved
Type of Proposals |
No. of Corporate Proposals Approved |
||
Q1 2011 |
Q4 2010 |
Q1 2010 |
|
Initial public offering - Main Market |
1 |
9 |
10 |
Reverse Take-Overs and Restructurings |
- |
- |
- |
Transfer to Main Market |
- |
2 |
1 |
Private debt securities |
17 |
27 |
8 |
Others |
31 |
4 |
- |
TOTAL |
21 |
42 |
19 |
(1) Offering of equity securities by foreign corporations with no listing on Bursa Malaysia .
ii) Private Debt Securities
Table 7: Approved RM-Denominated PDS Issues
Type |
Q1 2011 |
Q4 2010 |
Q1 2010 |
|||
No. of issuers |
Size of issues |
No. of issuers |
Size of issues |
No. of issuers |
Size of issues |
|
Conventional |
9(1) |
5,918.29 |
15(2) |
7,134.97 |
5(3) |
8,586.00 |
Sukuk |
5 |
7,770.00 |
8 |
20,565.00 |
2 |
590.00 |
Combination4 |
- |
- |
- |
- |
- |
- |
Total |
14 |
13,688.29 |
23 |
27,699.97 |
7 |
9,176.00 |
(1) Include 2 asset-backed securities (ABS) amounting to RM3,100.0 million.
(2) Include 1 ABS amounting to RM400.0 million.
(3) Include 2 ABS amounting to RM1,400.0 million.
(4) Combination of conventional and sukuk.
Table 8: Approved Foreign Currency-Denominated PDS Issues by Foreign Corporations
Type |
Q1 2011 |
Q4 2010 |
Q1 2010 |
|||
No. of offers |
Size of offers |
No. of offers |
Size of offers |
No. of offers |
Size of offers |
|
Conventional |
- |
- |
1(1) |
176.89 |
- |
- |
Sukuk |
1(1) |
-(2) |
3(1) |
750.00(3) |
1(1) |
450.00 |
Combination |
- |
- |
- |
- |
- |
- |
Total |
1 |
- |
4 |
926.89 |
1 |
450.00 |
(1) Offers in Malaysia were part of a global offering.
(2) Offer size had yet to be finalised at the point of approval.
(3) Include 2 proposals which had yet to finalise the offer size at the point of approval.
Table 9: Approved Foreign Currency-Denominated PDS Issues by Malaysian Issuers
Type |
Q1 2011 |
Q4 2010 |
Q1 2010 |
|||
No. of offers |
Size of offers |
No. of offers |
Size of offers |
No. of offers |
Size of offers |
|
Conventional |
2 |
1,300.00 |
- |
- |
- |
- |
Sukuk |
- |
- |
- |
- |
- |
- |
Combination |
- |
- |
- |
- |
- |
- |
Total |
2 |
1,300.00 |
- |
- |
- |
- |
iii) Take-Overs & Mergers
Table 10: Number of Approved Submissions Relating to the Malaysian Code on Take-Overs
and Mergers
Type |
Number of Submissions Approved |
||
Q1 2011 |
Q4 2010 |
Q1 2010 |
|
Clearance of offer document |
6 |
11 |
5 |
Application for exemption from mandatory offer obligation |
4 |
6 |
10 |
Others |
28 |
29 |
19 |
Total |
38 |
46 |
34 |
iv) Unit Trusts & Collective Investment Schemes
Table: 11: Number of Submissions Relating to Unit Trusts and Other Collective Investment Schemes Approved
Type |
Number of Submissions Approved |
||
Q1 |
Q4 |
Q1 |
|
Establishment of new funds |
16 |
17 |
24 |
Increase in fund size |
13 |
9 |
16 |
Exemption/variation from Guidelines1 |
4 |
1 |
4 |
Other applications 2 |
13 |
10 |
13 |
Total |
46 |
37 |
57 |
(1) Excluding applications submitted through the establishment of new schemes.
(2) Including applications for extension of time and change of management company.