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Wednesday, February 13, 2013

This year (2013 IPO) expectd to be another record bumper year for IPOs BY EUGENE MAHALINGA

PETALING JAYA: Another exciting year is in store in 2013 for initial public offerings (IPOs), if a recent report by HwangDBS Vickers Research is anything to go by.
The research report identified close to 30 companies that may be floated on the local bourse this year.
Of these, HwangDBS Vickers Research got the names of 21 companies that have their draft prospectuses displayed on the Securities Commission (SC) website.
Among the biggest IPOs set for this year are Malakoff Corp Bhd,Iskandar Waterfront Holdings Sdn Bhd, the power assets of 1MalaysiaDevelopment Bhd (1MDB)AirAsia X and possibly Westports Malaysia.
Last year was considered good for IPOs. According to the SC's quarterly scorecard, Malaysia's capital market saw a record RM145.9bil in funds raised through corporate bonds and IPOs in 2012.
This is 89% higher than the RM77.2bil registered in 2011.
In total, 17 companies were listed last year.
Hence, 2013 could prove to be a bigger IPO year in terms of total number of listings if all the companies on the HwangDBS list do make it to the local bourse.
It is interesting to note that a few IPOs are expected to be in the form of business trusts, such as the power assets of 1MDB.
A business trust is defined as a unit trust scheme where the management of the scheme and its assets are managed by a trustee-manager.
The recent amendments to the Capital Markets and Services Act 2007 and the issuance of the Business Trust Guidelines by the SC, effective Dec 28, 2012, saw the introduction of a new framework for the creation of business trusts in Malaysia.
Despite the number of IPOs slated for this year, it is also interesting to note that the local bourse will be losing out on a big one - the proposed listing of lottery operator Berjaya Sports Toto Bhd (BToto) unit Sports Toto Malaysia (STM), whose business trust listing in Singapore has received conditional approval.
According to news reports, BToto is said to be seeking to raise about S$500mil (RM1.3bil) from the IPO of STM.
Meanwhile, Iskandar Waterfront, a master property developer, is expected to list on the local bourse in June in a deal set to raise about US$300mil (RM909mil), although some reports indicated that the figure could be much higher.
The Johor-based company's IPO will see it joining a handful of listed master developers in Asia, such as the Philippines' Ayala Corp and Japan's Mitsubishi Estate Co Ltd.
According to news reports, the company has appointed CIMB Investment BankDeutsche Bank, JPMorgan and RHB Investment Bank for the IPO.
Making its comeback to the local bourse, Malakoff, the country's largest independent power producer, is set to list in the second quarter of this year and plans to raise about US$1bil (RM3.1bil).
A 51%-owned subsidiary of MMC Corp Bhd, Malakoff plans to use the bulk of its listing proceeds to pare down its debts.
As for Westports Malaysia, it is still uncertain if it will actually make its way to the local bourse.
Earlier news reports said the port operator is aiming to raise RM1.5bil from its IPO, with a possible listing in the second quarter of this year.
When asked about this recently, Westports Malaysia Sdn Bhd chief executive officer Ruben Emir Gnanalingam said: “Yes, listing is one of the options but we still do not know when.”
Also making headlines is business tycoon Tan Sri Syed Mokhtar Al-Bukhary, whose private company, Perspective Lane (M) Sdn Bhd, late last year submitted an application to the SC for the conditional takeover offer of Tradewinds (M) Bhd.
StarBiz recently reported that upon the completion of the privatisation exercise, Syed Mokthar would be streamlining Tradewinds' businesses into four core units sugar, palm oil, rubber and rice.
He is said to have plans to seek a listing of the sugar unit on Bursa Malaysia in the latter part of this year, to be followed by the rice unit.

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