IPO Development In Malaysia

Reported in The Business Time (25/9/06), the IPO listing has been rather slow compared to previous years. ( refer below table)

“As at September 7, the number of IPOs had fallen by more than half to 31 listings from 79 last year, mainly due to a drastic drop in Mesdaq debutants, data from Bursa Malaysia show.”

However, the Securities Commission (SC) believes that it should be a healthy sign as they are looking for quality companies which have good fundamentals.

According to SC’s executive officer Yusli Mohamed Yusoff the SC, is putting up great efforts to enhance the quality of the market, places a lot of importance on quality PLCs, and has taken rigorous assessments to root out PLCs without good businesses, especially those which are just seeking to cash out,

Incidentally, since May when SC tightened the listing rules for Mesdaq companies, there have been a sharp reduction of IPO listing during this year.this year. By doing so, the Mesdaq market can be on par with international standards and practices.

In my earlier articles, I have also mentioned

• the reasons for SC to reject some companies from the recent IPO exercises.
• efforts by SC to ease rules to allow cross-border listings. Large foreign-owned firms with operations abroad can now seek primary or secondary listings on the main board.Eligible Malaysian-owned firms with operations abroad are also encouraged to list back home without having to comply with the minimum ownership period

Tabulated below are:

Number of New Listings As At Sept 7, 2006

• Malaysia IPO Statistics In Q3’2007
• Do You Meet The Criteria For IPO In Malaysia?
• Malaysia: Bursa Securities (KLSE) Amends Rules on Bonus Issues
• Malaysian New Cross-Border Listing Rules
• Exploring IPO In Vietnam
• Malaysia IPO Listing
• IPO Price – How Fair Is It?