Bursa not raising fees for listed companies
Net profit for Q4 up on higher trading revenue
KUALA LUMPUR: Bursa Malaysia Bhd, the stock exchange operator, says it will not raise the annual fees it charges listed companies this year, although some of the services it provides are overdue for a rate hike.
Chief executive officer Datuk Seri Tajuddin Atan said the bourse was initially considering revising its rates to recoup cost.
“It (the listing fee structure) is a process that we have discussed with the industry and the regulator. This year, we will not increase it,” he told reporters following a briefing on Bursa Malaysia’s 2017 financial year performance here yesterday.
A study on the rates is ongoing, according to Tajuddin.
“There are services where the fees have not been raised for 15 years and there is room for improvement. So, we need cost-recovery,” he said.
According to reports, the annual listing fee for listed companies on the Main Market of Bursa Malaysia is fixed at 0.0025% of the total market value of the issued capital of the companies, subject to a minimum fee of RM20,000 and a maximum fee of RM100,000.
Separately, Tajuddin also said Bursa Malaysia would be allocating a portion of its annual capital expenditure towards upgrading the exchange’s surveillance systems.
“There are technological advancements that need to be refreshed. The last time we decided to refresh our systems was in 2011,” he said, adding that the exchange also had plans to launch more products in the derivatives market.
“We want to invite new investors. Being able to invest and trade should not cost an arm and a leg. We’re in the process of obtaining the relevant approvals and putting things into place.”
Tajuddin said he is expecting a promising 2018 for initial public offerings (IPOs) – with a few big names expected to headline the list. He added that the market would see more companies being listed this year, compared with 2017.
“There were 13 IPOs last year and we expect to see more in 2018. We can’t reveal who they are... but expect some big names.”
He also said Bursa Malaysia expects the securities market to remain resilient this year, given the recent economic data, equity market performance, strengthening ringgit and expected positive corporate earnings.
“Trading volatilities, however, may be influenced by local and external factors, such as geopolitical developments and the tightening of monetary policies in major economies this year.”
Bursa Malaysia’s net profit for its fourth quarter ended Dec 31, 2017 rose to RM55.27mil from RM50.17mil in the previous corresponding period, underpinned by higher trading revenue as well as listing and issuer services.
Revenue in the fourth quarter increased to RM141.20mil from RM123.74mil a year earlier.
For its financial year ended Dec 31, 2017, the stock exchange operator’s net profit increased to RM223.04mil from RM193.62mil in the previous corresponding period, while revenue grew to RM556.83mil from RM506.78mil a year earlier.
Profit after tax and minority interest (Patami) increased 15.2% to RM223mil in 2017 from RM193.6mil.
This is Bursa Malaysia’s highest recorded full-year Patami since 2007, and highest full-year operating revenue since its listing in 2005.
The company also approved a second interim dividend of 18.5 sen per share for 2017, amounting to RM99.4mil payable on March 5.
With that, the total dividend (including special dividend) declared for the year amounts to 53.5 sen per share.