Bursa expects more IPOs

UPTREND: Malaysia most productive in new listings for first half of 2012


MALAYSIA, which has produced two of the world's biggest initial public offerings (IPO) so far this year, expects more to come - albeit on a smaller scale - as it looks to cement its position as Asia's top IPO market for 2012.

"We're the most productive in new listings for this first-half. I think we still have a few more in store, but not as large as we might want to see.

"The trend is interesting. It's a testimony of the market liquidity, and depth and breadth of Bursa Malaysia," Bursa Malaysia Bhd's chief executive officer Datuk Tajuddin Atan told reporters here yesterday after the dual listing of IHH Healthcare Bhd in Malaysia and Singapore.

IHH, which raised RM6.3 billion from its IPO, is the world's third largest offering this year after that of Facebook and Felda Global Ventures Holdings Bhd.

Tajuddin said it was "quite possible" that Malaysia would see more such dual listings in the future.

"The linkage between Malaysia and Singapore is quite interesting. Investors on both sides seem to understand the market quite well and there's enough liquidity from both sides. I think it doesn't hurt if it were to continue in that strength," he remarked.

Malaysia pushed ahead with the big IPOs of government-controlled Felda and IHH, while some other anticipated listings in the region- such as that Formula One in Singapore - were delayed given the volatile climate.

Felda Global, an oil palm operator, was listed on Bursa last month. Other IPOs that are expected to come later this year include tycoon T. Ananda Krishnan's pay-tv firm Astro All Asia Networks plc.

The world's largest condom maker, Karex Industries Sdn Bhd, is aiming for a listing next year.

IHH yesterday fetched a 10.4 per cent premium at the end of its first day of trade on Bursa.

A Malaysian government spokesperson said IHH's successful listing demonstrated the depth and vibrancy of Malaysia's capital markets, especially given its timing during a very difficult week in the global markets.

"The outlook for the world economy remains bleak, but, as this successful IPO shows, Malaysia continues to buck the global trend," he said.

So far this year, there have been 10 new listings in Malaysia, compared with 28 last year and 29 in 2010.