MEGA IPOs IN PIPELINE

Group also expects RM90b infrastructure bond, sukuk issuances this year

CIMB Group Holdings Bhd expects some RM10 billion in equity fundraising in the first

half of the year, led by jumbo listings as well as small- and mid-cap companies.

LIDIANA ROSLI

KUALA LUMPUR lidiana@mediaprima.com.my

CIMB Group Holdings Bhd expects some RM10 billion in equity fundraising in the first half of this year and RM90 billion in infrastructure bond and sukuk issuances for the whole year.

“We are looking at some RM10 billion from equity fundraising, underpinned by jumbo initial public offerings (IPOs) as well as small- and midcap companies,” said group chief executive officer Tengku Datuk Seri Zafrul Tengku Ab- dul Aziz during a briefing at the CIMB 10th Annual Malaysia Corporate Day, here, yesterday.

He did not disclose the IPOs in the pipeline this year, but a Reuters report has cited fastfood operator QSR Brands Bhd, which is looking to raise about US$500 million (RM2 billion), Edra Energy Sdn Bhd (between US$500 million and US$1 billion), and Bank Islam Brunei Darussalam Bhd (US$500 million), as among the candidates.

Tengku Zafrul expects banks to see stronger loan growth of between four and five per cent this year.

“CIMB has always targeted to grow on a par with the industry average, or higher, this year. I will ensure that we grow higher than that,” he said on CIMB’s housing loan target. He expressed confidence that the highly-anticipated general election would not have a huge impact on the banking industry or CIMB.

“There will not be an impact on the group but in terms of the economy, it might, depending on the outcome of the election.

“However, we expect a positive rally in terms of fund inflow, which will be translated into a stronger ringgit,” he said, adding that the outcome had been factored in for this year’s outlook.

Tengku Zafrul said the anticipated Overnight Policy Rate (OPR) hike by Bank Negara Malaysia later this month would have minimal impact on CIMB.

The group is forecasting a gross domestic product growth of 5.2 per cent this year, on the back of stronger performance in the commodity, electrical and electronics and manufacturing sectors.

CIMB is also expecting the e-commerce, banking, insurance and infrastructure sectors to thrive this year.

“We are also anticipating the ringgit to strengthen to 4.05 against the US dollar this year, on the back of stronger economic performance,” said Tengku Zafrul.

For the year just ended, CIMB was the best-performing banking stock and the second-best performing stock on the FTSE Bursa

We are also anticipating the ringgit to strengthen to RM4.05 against the US dollar this year... TENGKU DATUK SERI ZAFRUL TENGKU ABDUL AZIZ CIMB Group Holdings Bhd group chief executive officer

Malaysia KLCI, yielding total shareholder returns of 51.2 per cent.

“Thanks to the excellent execution of our T18 (Target 2018) strategy, the group re-calibrated quickly and is now on a sustainable growth path, underpinned by our emphasis on the ‘5Cs’, which are capital, cost, compliance, customers and culture. I am happy to say we are on track to meet all our T18 targets by the end of this year,” he added.