Bursa Malaysia sees healthy pipeline of IPOs this year
But Tajuddin sees smaller overall value as most of the listings will be on ACE Market
BURSA Malaysia Bhd is expecting this year to surpass last year’s total number of initial public offerings (IPOs). Chief executive officer Datuk Seri Tajuddin Atan said as of June 30, Bursa Malaysia already saw a total of 11 IPOs, mostly in the ACE Market.
“We are hoping that the number of IPOs this year will surpass that of 2017, given that we already have 11 IPOs totalling some RM2 billion in market capitalisation (market cap) in the first half.
“But these IPOs will carry a smaller value as most of them will be on the ACE Market,” he said at the Bursa Malaysia’s first-half results announcement, here, yesterday.
“Last year, we saw a total 13 IPOs totalling RM21 billion in market cap.”
Most recently, Bursa Malaysia saw three new listings on the ACE Market — Nova Wellness Bhd, Radiant Globaltech Bhd and Revenue Group Bhd.
QSR Brands (M) Holdings Bhd’s RM2 billion IPO is slated for the Main Market in November.
Meanwhile, Bursa Malaysia posted its highest-ever first-half net profit at RM122 million for the period ended June 30.
The results, said Tajuddin, were primarily driven by higher operating revenue of RM279.1 million, a 3.6 per cent increase from the previous corresponding period.
“Overall performance for the first half is very interesting because when you look at it, it is a tale of the two quarters, where the first quarter was tracking quite well regionally and globally.
“We expected lower volume in the second quarter but then we had the 14th General Election with an unexpected conclusion and the volume traded on the back of that was tremendous. I am proud that we are able to support the volume.”
Tajuddin said the high trading volume did not translate into higher revenue because of the existing capping of clearing fees at RM1,000.
He said Bursa Malaysia might look at reviewing the cap for clearing fees if volatility in the equity market were to remain for the rest of the year.
Tajuddin also expressed hope that the government would continue its approach towards strengthening transparency and accountability, as well as the principles of good public governance.
“I am confident that on the back of strong economic fundamentals and the government’s approach towards strengthening transparency and accountability, as well as the principles of good public governance, the Malaysian capital market will continue to remain resilient.
“Given time and with greater clarity, the new policies and governance reforms will drive ivestor confidence and businesses in the country’s economy and provide Bursa Malaysia with new growth opportunities for the future,” he said.
Bursa Malaysia has a market cap of RM1.77 billion as at June 30.