More IPOs expected in 2H, but with lesser funds raised

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KUALA LUMPUR (July 30): The number of initial public offerings (IPOs) on Bursa Malaysia in the second half of 2018 (2H18) is expected to be higher than last year, but with lesser funds raised.

Last year, the market saw 13 new IPOs which raised RM21.9 billion in proceeds and from the secondary market.

Bursa chief executive officer Datuk Seri Tajuddin Atan declined to reveal the exact number of IPOs that the exchange is targeting for 2018.

“We are targeting some IPOs especially from the ACE Market, and some from the Main Market as well. Up to June 30, there have been 11 IPOs which raised around RM2 billion [in proceeds and from the secondary market],” he told a news conference to announce Bursa’s financial results for the second quarter ended June 30, 2018 today.

Tajuddin said the expected lower proceeds was because companies seeking listings this year have taken a wait-and-see approach, given the uncertainties of external factors such as the ongoing trade war and on the local front, the elections and subsequent policy direction from the new Pakatan Harapan government.

“Basically, there was a wait and see approach before the elections, and now that the elections are over, we believe businesses are gathering their thoughts on how to move forward.

“I think everyone is happy to see that this is the new Malaysia that will provide new hope and a new trajectory. Those who were holding on to their capital raising plans before over concerns on public governance and corruption, they should come back,” he said.