SC scorecard: Higher equity capital-raising in 3Q

Tags: ACE Market | CMSA | IPOs | Main Market | Securities Commission | third quarter

Written by Financial Daily
Tuesday, 20 October 2009 11:03

KUALA LUMPUR: The third quarter of 2009 saw more equity capital-raising activities with companies seeking to raise funds from the capital market, according to the third quarter (3Q) scorecard released by the Securities Commission (SC) yesterday.

In a statement, the SC said it had approved 12 proposals for equity capital-raising by listed corporations in 3Q09 compared with 10 proposals approved in 2Q. The amount to be raised from these 12 proposals totalled RM1.43 billion, almost double the RM789.24 million approved to be raised in 2Q. After Aug 3, equity capital-raising by public companies (both listed and unlisted) and falling within the ambit of Schedule 5 of the Capital Market & Services Act (CMSA) no longer requires SC approval.

The SC said there was also steady interest in raising funds from the capital market via initial public offerings (IPOs). The SC received eight IPO applications in 3Q09 compared with six in the previous quarter. Three applications for listing on the Main Market and one for the ACE Market were approved, while one application each was either withdrawn or returned.

Two proposed merger and acquisition exercises were approved in 3Q09, compared with eight in 3Q08 and none in 2Q09.

The SC said a total of 1,260 applications were received for new licences and renewal of licences, the highest number so far this year. A total of 27 submissions were made for the establishment of new unit trust funds in 3Q09 compared with 42 in 3Q08 and 21 in 2Q09.