Fourteen listings in Bursa raised RM395m in 1H21

Of the total, 2 are in Main Market, 7 in the ACE Market and 5 in the LEAP Market

by MUHAMAD AMIR AIMAN AZLAN

MALAYSIA recorded 14 listings, raising RM395 million with a market capitalisation of RM1.5 billion in the first half of 2021 (1H21).

Of the 14 listings, 2 were Main Market listings, 7 in the ACE Market and 5 in the LEAP Market.

“One, in particular, OM Holdings Bhd stood out as a dual-listed company with Bursa Malaysia and Australian Stock Exchange.

“It was an impressive development in comparison to 2020 which only saw seven listings,” Deloitte IPO Leader Wong Kar Choon noted in a statement yesterday.

However, Malaysia is not the only South-East Asia (SEA) capital market that has shown positive growth.

Wong added, SEA capital market had 59 IPOs in 1H21 a combined total of US$5.97 billion (RM24.98 billion) with the top-performing country being Thailand, having raised US$3.3 billion in 1H21 and accounting for 55% of the capital raised in SEA.

He stated the growth in the capital market in Malaysia and SEA region is supported by the recovery in consumer confidence.

He added 2021 is the year where most countries, including Malaysia, will receive their vaccination and the development provides a sense of optimism that economic recovery is impending in both the local and global context.

This will continue to encourage businesses to tap into the capital market and companies that are doing well will continue to increase their presence and capacity despite the pandemic.

“Continued support from retail investors also helped as while the average trading volumes have decreased from a high peak in 2020, the average daily trading volume is hoping to pick up towards the tail end of 2021 as vaccination rate increases for most countries and businesses reopen,” he said.

He added technology-based start-up companies are trying to seize the opportunities by seeking a different type of fundraising involving a special-purpose acquisition company (SPAC).

The increase of interest in SEA technology-based start-ups seeking a SPAC merger in the capital market in the US is because it is seen as a faster alternative in raising capital than the traditional IPOs and the large sum of funds available in the US capital market.

Based on the data by Spacktrack. net, the current SPAC trust funds available in the US that is still searching for a viable business merger is US$114 billion. That is a lot needed to find a viable business within 24 months from a SPAC IPO.

Although there has been a bit more talk of SPAC recently, it is not a new term in the Malaysia capital market as the local equity market had its first SPAC in 2011 with the listing of Hibiscus Petroleum Bhd.

“With enthusiasm into SPAC, we may also see a renewed interest in SPAC listing in the Malaysian capital market,” he noted.