Friday 29 Mar 2024
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KUALA LUMPUR (Oct 31): A total of RM2.8 billion was raised via new listings through initial public offerings (IPOs) in Malaysia in the first nine months of 2022 (9M22), about 22% higher than the RM2.3 billion raised in the same period last year, according to Bursa Malaysia Bhd.

This was despite the local securities market registering a trading revenue of RM203 million in 9M22, a decrease of 43.6% year-on-year, compared with RM359.9 million in 9M21.

In a statement released by Bursa Malaysia on Monday (Oct 31), the stock exchange operator attributed the decrease in trading revenue to lower average daily trading value for securities market's on-market trades and direct business trades from RM4 billion in 9M21 to RM2.2 billion in 9M22.

Additionally, trading velocity in 9M22 declined by 24 percentage points to 30%, from 54% in 9M21.

As global volatility and the higher interest rate environment continue to challenge the securities market business, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift observed that the improvements in the performance of the derivatives market as well as market data businesses helped contribute to the bourse's bottom line in 9M22.

"We will continue to ensure that the exchange innovates and remains agile to generate increased volumes thus contributing to higher revenue streams in all segments of our business in this investment climate.

"Trading volume is facing strong global headwinds, but the exchange continues to actively engage with existing and potential market participants to highlight the market's value and appeal," he stressed.

Bursa set to beat number of IPO listing target for 2022

Betamek Bhd's listing on Oct 26 marked the 31st company to be listed on Bursa Malaysia, with the group also being the 22nd company to be listed on the ACE Market this year.

In January this year, Bursa Malaysia forecast 37 listings for 2022, versus 30 last year, although Umar noted that the actual number of IPOs would depend on market circumstances.

On Oct 26, Bursa Malaysia director of origination and listing Azhar Mohd Zabidi in his opening remarks at Betamek's listing ceremony highlighted that the Malaysian IPO market remained encouraging despite various uncertainties such as geopolitical issues, supply chain disruptions, rising inflation, interest rate hikes and fears around recession.

"Looking at our pipeline of issuances between now and the end of the year, we remain reasonably optimistic that we will achieve the targeted number of listings across our three markets in 2022," he remarked.

According to Bursa Malaysia's IPO website at the time of writing, Leform Bhd is the next company, scheduled to be listed on Nov 22.

It is seeking to raise RM71.5 million via an IPO exercise on the ACE Market of Bursa Malaysia, with some 42% of the proceeds to be used for constructing its new headquarters, warehouse storage facility and workers' accommodation.

The company and its subsidiaries are principally involved in the manufacturing of and trading in steel pipes, guardrails and flat steel products such as slitted steel coils and sheets.

Edited ByLiew Jia Teng
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