Bursa: Local market still an attractive IPO destination

KUALA LUMPUR: With big players set to be listed, Bursa Malaysia said the local market is still an attractive listing destination.
Citing the imminent listing of Lotte Chemical Titan Holding Bhd and with Edra Power Holdings Sdn Bhd “most probably coming in this year”, Bursa Malaysia CEO Datuk Seri Tajuddin Atan said he was positive over the stock market’s performance.
Lotte Chemical is one of the biggest initial public offerings (IPOs) in recent years, while Edra Power is the second largest independent power producer in Malaysia. It was reported that Edra Power, which is en route for listing in November, is looking to raise over RM5 billion.
More IPOs are expected to come in this year, which include new entries and companies that had previously delayed their IPOs, according to Tajuddin.
“Last year, the market was a bit slow. This year, the sentiment is stronger with fundamentals like gross domestic product (GDP) announced by Bank Negara Malaysia being much better, company earnings are also much better and the confidence is coming back,” he told reporters at the launch of Kenanga’s Ken Trade challenge.
The executive director and head of group equity broking business of Kenanga Investment Bank Bhd, Lee Kok Khee, said given the improvement in investors’ sentiment and better balance sheet, he sees the current market is conducive for IPOs.
Some eight companies were listed on the local bourse in the first half of the year, with only three main board listings – Eco World International Bhd, Serba Dinamik Holdings Bhd and KIP Real Estate Investment Trust.
Two more Main Market listings in the pipeline are Lotte Chemical and Advancecon Holdings Bhd, scheduled to make their debut next week.
The stock markets saw a hiccup last year, with only less than RM1 billion raised from the listings of 12 companies. This was the lowest number recorded since the 2008-2009 global financial crisis.
Yesterday, Kenanga Investment Bank Bhd launched the KenTrade Trading Challenge, which will be returning for the third season.
The challenge is open to Malaysians and permanent residents aged 18 and above, and is slated to go on from July 31 to Sept 29, and RM1 million has been set aside for the virtual program, in which the finalist will be able to trade live and walk away with up to 50% of the gains made.
Kenanga hopes to attract 20,000 participants this time around.