KUALA LUMPUR: Bursa Malaysia Bhd said the pipeline for initial public offerings (IPO) for this year is looking healthy, given the number of submissions and approvals received.

Bursa chief executive officer Datuk Tajuddin Atan told reporters that the size of the IPOs is expected to exceed the RM8.2 billion in funds raised (excluding the secondary market) in 2013.

“Given the positive trend and clarity in Malaysia’s economy and politics, I think the pipeline will continue to be healthy. A number of big companies have expressed their interest in an IPO,” he said.

According to the Securities Commission Malaysia website, 7-Eleven Malaysia Holdings Bhd, Boustead Plantations Bhd and MyETF MSCI Malaysia Islamic Dividend have just released their draft prospectuses.

Meanwhile, potential mega IPOs such as the listing of 1Malaysia Development Bhd’s (1MDB) power assets, Malakoff Corp Bhd and Iskandar Waterfront Holdings (IWH) could also be in the pipeline.

Last year, Malakoff’s IPO lapsed while IWH held back its listing on concerns over the new property cooling measures announced by the government.

For financial year 2013 ended Dec 31 (FY13), the local bourse raised a total of RM22.55 billion in funds from new listings in the secondary market, 29% lower than the RM31.73 billion raised in 2012.

Tajuddin said Bursa will look at growing the number of ACE Market listings. Last year China-based bamboo products maker Kanger International Bhd was the only company to make a debut on the ACE Market.

For FY13, Bursa posted a net profit of RM173.08 million or 32.5 sen a share, the highest since 2008, which was 14.9% higher than RM150.6 million in FY12.

Total revenue increased 12% to RM475 million from RM424.58 million previously.

Net profit fell 5% to RM33.84 million from RM35.76 million in the fourth quarter, while revenue rose to RM113.93 million from RM104.23 million a year ago.

Bursa proposed a final dividend of 16 sen per share, bringing the full-year payout to 52 sen or a yield of 6.3%.

Tajuddin said he expects Bursa’s positive revenue trend to continue.

“Looking at the past few years, we have consistently delivered higher revenues, while costs remain relatively stable. The exchange has been working on its cost-to-income ratio,” he said.

Tajuddin said despite the recent external market pressures, he maintains a positive outlook for 2014.

“Of late, issues of currency fluctuations and talk of more QE [quantitative easing] tapering measures by the US Federal Reserve have put a dampener on the market. I think for Bursa Malaysia the fundamentals remain intact and growth will continue and is quite sustainable,” he said.

This article first appeared in The Edge Financial Daily, on January 30, 2014.