Bursa looks to some sizeable IPOs this year

Bursa Malaysia expects more IPOs this year with an improving economy and interest would come from companies in China and countries 'around Malaysia'


Bursa Malaysia may not have an initial public offering (IPO) the size of Maxis Bhd's this year, but several sizeable state-owned companies should be listed under the government's second wave of privatisation.

Maxis raised RM11.2 billion from its IPO last year, making it Southeast Asia's biggest initial share sale. However, there were only 14 IPOs in 2009 compared with 23 in 2008.

Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff expects more IPOs this year with an improving economy. Interest would come from companies in China and countries "around Malaysia", he said.

"We are also hopeful that companies from other countries will consider listing here," he told a media briefing to announce the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.



The first listing this year will be on February 19, with home furniture maker and designer Homeritz Corp Bhd making its debut on the Main Market.

The local bourse attracted three Chinese companies last year and Yusli expressed confidence that there would be a few more this year.

"We also want to see domestic retail investors become more familiar with our companies so that they can tap opportunities available. It is a shame if the locals don't have the first bite," he said.

Bursa Malaysia plans to organise Invest Malaysia events in Hong Kong and Shanghai on a more regular basis.

"We need to make our presence felt in markets and get the right profile," Yusli said, urging Malaysian companies to do more marketing roadshows in places like New York and London.

Invest Malaysia 2010 will be held in Kuala Lumpur on March 30 and 31.

Prime Minister Datuk Seri Najib Razak is scheduled to give the keynote address at the conference, which is expected to attract more than 600 local and foreign investors.

Maybank Investment Bank and Japan's Nomura Holdings will partner Bursa Malaysia to further promote Malaysian corporations and Malaysia as Asean's premier investment destination.

The sixth edition of the conference will include the Malaysian Industrial Development Authority (Mida), which will showcase foreign direct investment opportunities.

Mida director-general Datuk Jalilah Baba said the agency was in talks with several potential foreign investors in green technology, research and development (R&D) and high-knowledge industries.

"The new trend for foreign direct investments coming in will be on innovation and high-knowledge content in the manufacturing and services industry," she said.