Ringgit-denominated sukuk issuances dominated Malaysian fund-raising activities approved by the Securities Commission Malaysia (SC) for the year, accounting for RM78.9 billion out of RM118.9 billion total funds approved through the capital market.
More than half of the amount to be raised from sukuk issuances was approved during the fourth quarter, through 15 Ringgit-denominated sukuk issues which are set to raise RM41.7 billion from the market.
In releasing its Q4 2011 scorecard, the SC noted that fund-raising activities through issuances of corporate bonds and sukuk have increased significantly. A total of 33 applications for corporate bonds and sukuk were approved during the quarter, an increase of 120% against the 15 applications approved in Q3. These involved 28 Ringgit-denominated issues and eight foreign currency-denominated issues.* The approvals also included the world’s largest corporate sukuk programme of RM23.3 billion by Projek Lebuhraya Usahasama Berhad. Issuance commenced under the programme in 2012.
Corporate bonds and sukuk issues approved in Q4 are expected to raise a total of RM48.2 billion, which is three times more than the RM16.1 billion approved in Q3. In total, almost RM112.3 billion in Ringgit-denominated corporate bonds and sukuk was approved as of end 2011, which is almost double the RM63.6 billion approved in 2010.
The SC approved two applications for initial public offering (IPO) in Q4. The two IPOs are expected to raise RM820.8 million from the capital market and to have a combined potential market capitalisation of RM3.2 billion.
On collective investment schemes, the SC approved 33 applications to establish new funds in Q4, as compared to 20 in Q3. Out of the total applications for new funds, 14 are for the establishment of new unit trust funds; 18 for wholesale funds and one for real estate investment trust (REIT).
Capital market statistics released by the SC provide information on processing, approvals and rejections of applications, including timing and reasons for rejection. More details and the full series of capital market statistics can be found on the SC website.
*A single application can represent more than one issuance
CAPITAL MARKET STATISTICS
SC Scorecard Q4 2011 & Statistics of Submissions Approved by the SC in Q4 2011
A. Corporate Submissions to the SC – Q4 2011
Table 1: Status of Substantive Applications as at 31 December 2011
|
Applications |
Total |
|
Balance brought forward from Q3 2011 |
21 |
|
Add: Applications received in Q4 2011 |
41 |
|
Total applications |
62 |
|
Less: Applications Considered in Q4 2011 |
(45) |
|
Less: Applications Withdrawn in Q4 2011 |
(5) |
|
Balance carried forward to Q1 2012 |
12 |
Table 2: Substantive Applications Considered/Withdrawn in Q4 2011
|
Type of proposals |
Considered |
Withdrawn |
Total |
||
|
Approved |
Rejected |
Returned |
|||
|
Initial Public Offering - Main Market |
2 |
- |
- |
1 |
3 |
|
Reverse Take-Overs and Restructurings |
3 |
- |
- |
- |
3 |
|
Transfer from ACE Market to Main Market |
1 |
- |
- |
- |
1 |
|
Corporate Bonds and Sukuk |
33 |
- |
1 |
1 |
35 |
|
Others |
4 |
- |
1 |
3 |
8 |
|
TOTAL |
43 |
- |
2 |
5 |
50 |
Table 3: Processing Turnaround Time for Substantive Applications Considered in Q4 2011
|
Substantive Applications |
Within Time Charter1 |
Exceed Time Charter |
Total |
|||
|
No. |
% |
No. |
% |
No. |
% |
|
|
43 |
96 |
2 |
4 |
45 |
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 IPO applications and transfer of listings to the Main Market of Bursa Malaysia: 32 working days; and
- Corporate bonds and Sukuk applications: Deemed approval and 14 working days.
B. Corporate Submissions Approved by the SC – Q4 2011
i) Proposals Approved
Table 4: Number of Corporate Proposals Approved
|
Type of Proposals |
No. of Proposals Approved |
||
|
Q4 2011 |
Q3 2011 |
Q4 2010 |
|
|
Initial Public Offering - Main Market |
2 |
2 |
9 |
|
Reverse Take-Overs and Restructurings |
3 |
- |
- |
|
Transfer from ACE Market to Main Market |
1 |
- |
2 |
|
Corporate Bonds and Sukuk |
33(1) |
15(2) |
27(3) |
|
Others |
4 |
1 |
4 |
|
TOTAL |
43 |
18 |
42 |
(1) 33 applications involving 28 Ringgit-denominated issues and 8 foreign currency-denominated issues of corporate bonds and Sukuk (Tables 5 & 6).
(2) 15 applications involving 19 Ringgit-denominated issues of corporate bonds and Sukuk (Tables 5 & 6).
(3) 27 applications involving 28 Ringgit-denominated issues and 4 foreign currency-denominated issues of corporate bonds and Sukuk (Tables 5 & 6).
ii) Corporate Bonds and Sukuk
Table 5: Approved Ringgit-Denominated issues
|
Type |
Q4 2011 |
Q3 2011 |
Q4 2010 |
|||
|
No. of Issues |
Size (RM mil) |
No. of Issues |
Size (RM mil) |
No. of Issues |
Size (RM mil) |
|
|
Corporate Bonds |
13 |
6,544.79 |
10 |
7,786.72 |
17 |
7,134.97(1) |
|
Sukuk |
15 |
41,698.10 |
8 |
4,845.00 |
11 |
20,565.00 |
|
Combination(2) |
- |
- |
1 |
3,500.00 |
- |
- |
|
Total |
28 |
48,242.89 |
19 |
16,131.72 |
28 |
27,699.97 |
(1) Include one asset-backed securities (ABS) amounting RM400.0 million.
(2) Combination of corporate bonds and Sukuk.
Table 6: Approved foreign currency-denominated issues by foreign corporations(1)
|
Type |
Q4 2011 |
Q3 2011 |
Q4 2010 |
|||
|
No. of Issues |
Size (mil) |
No. of Issues |
Size (mil) |
No. of Issues |
Size (mil) |
|
|
Corporate Bonds |
1 |
IDR1.5 trillion |
- |
- |
1 |
IDR1.6 trillion |
|
Sukuk |
7 |
USD200.0 million(2) |
- |
- |
3 |
USD750.0 million(3) |
|
Combination |
- |
- |
- |
- |
- |
- |
(1) Offers in Malaysia were part of global offerings.
(2) 6 proposals have yet to finalise the offer size at the point of approval.
(3) 2 proposals have yet to finalise the offer size at the point of approval.
Table 7: Approved foreign currency-denominated issues by Malaysian Issuers
|
Type |
Q4 2011 |
Q3 2011 |
Q4 2010 |
|||
|
No. of Issues |
Size (mil) |
No. of Issues |
Size (mil) |
No. of Issues |
Size (mil) |
|
|
Conventional |
- |
- |
- |
- |
- |
- |
|
Sukuk |
- |
- |
- |
- |
- |
- |
|
Combination |
- |
- |
- |
- |
- |
- |
iii) Take-Overs & Mergers
Table 8: Number of Submissions Considered under the Malaysian Code on Take-overs and Mergers 2010
Type |
Number of Submissions Considered |
||
|
Q4 2011 |
Q3 2011 |
Q4 2010^ |
|
|
Clearance of offer document |
3 |
9 |
11 |
|
Exemption from mandatory offer obligation |
6 |
8 |
6 |
|
Clearance of independent advice circular |
7 |
10 |
10 |
|
Appointment of independent adviser# |
- |
- |
12 |
|
Others* |
13 |
13 |
4 |
Total |
29 |
40 |
43 |
* Includes extension of time, rulings, waiver from provisions of the Code and other ancillary applications.
# Since the coming into effect of the Malaysian Code on Take-overs and Mergers 2010, an independent adviser shall declare its independence as opposed to obtaining the approval of the SC for its appointment.
^Certain comparable figures for Q4 2010 have been restated to conform with the current quarter’s presentation.
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 |
||
|
Q4 |
Q3 |
Q4 |
|
|
Establishment of new funds |
33 |
20 |
17 |
|
Increase in fund size |
17 |
23 |
9 |
|
Exemption/variation from Guidelines1 |
1 |
4 |
1 |
|
Other applications 2 |
9 |
6 |
10 |
|
Total |
60 |
53 |
37 |
(1) Excludes applications submitted through the establishment of new schemes.
(2) Includes applications for extension of time and applications to act as E-Host and provide online activities.
Table 10: Status of Licensing Applications as at Q4 2011
|
New licence application |
Received |
Withdrawn |
Returned |
Considered |
Approved |
Rejected |
Pending |
|
Representative |
356 |
0 |
14 |
342 |
292 |
0 |
50 |
|
Corporation |
6 |
0 |
0 |
6 |
0 |
0 |
6 |
|
Individual |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total |
362 |
0 |
14 |
348 |
292 |
0 |
56 |
Table 11: Processing Turnaround Time for Licensing Applications
|
|
New licence Application |
|
|||||||
|
|
Within time charter |
Exceeds time charter |
Subtotal |
Exception |
Total approved |
||||
|
|
Total |
% |
Total |
% |
Total |
% |
|||
|
|
Representative |
284 |
97.26 |
8 |
2.74 |
292 |
0 |
0 |
292 |
|
|
Corporation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
Individual |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
Total |
284 |
97.26 |
8 |
2.74 |
292 |
0 |
0 |
292 |
