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Bursa Malaysia's IPO pipeline remains solid despite challenging environment

October 30, 2019
Source:  New Straits Times

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KUALA LUMPUR: Bursa Malaysia Bhd initial public offering (IPO) pipeline has remained solid despite challenging operating environment.

 

Chief executive officer Datuk Muhamad Umar Swift said to date, the exchange has already welcomed 27 new listings, surpassing the 21 total listings in 2018.

 

"Among major Asean bourses, Bursa Malaysia also ranked second for funds raised and the number of new listings in the first nine months of 2019 (9M2019),” he said in a statement today.

 

In the derivatives market, he said the exchange has facilitated new inter-broke relationships and signed up new market makers and liquidity providers from the Greater China region, which further expanded the derivatives trading community during the period.

 

“We also remain positive on the Islamic Capital Market, which saw increased participation by institutional investors and onboarding of new participants on Bursa Malaysia-i and Bursa Suq Al-Sila’ (“BSAS”) respectively,” he added.

 

Earnings wise, Bursa Malaysia's net profit in the third-quarter (Q3) ended September 30, 2019 reduced 6.16 per cent to RM47.10 million from RM50.19 million previously.

 

In an exchange filing today, the local bourse said lower earnings was partly due to lower operating revenue including trading revenue, reduction in average daily trading value for on-market trades and direct business trades.

 

Its Q3 revenue dropped 5.51 per cent to RM122.67 million from RM129.82 million, dragged by lower derivatives market trading revenue.

 

Further, the Securities Market performance in the nine month (9M) of 2019 continued to be influenced by both global and domestic developments, such as the heightened risk of global economic slowdown, easing of global financing conditions and weaker corporate earnings.

 

In 9M2019, Bursa Malaysia’s net profit decreased 18.52 per cent to RM140.30 million from 172.19 million recorded in the same period last year, while revenue reduced 11.38 per cent to RM373.16 million from RM421.10 million a year ago.