Bursa Malaysia to raise at least $105m in IPO<\/p>\n
Bloomberg, Kuala Lumpur<\/p>\n
Bursa Malaysia Bhd., which runs the nation's stock exchange, said
\nit plans to raise at least 400 million ringgit (US$105 million)
\nin an initial sale of shares, as it seeks to upgrade trading
\nsystems and boost volumes.<\/p>\n
Bursa is offering institutional investors 116.9 million shares
\nat a price that will be determined on the basis of bids by
\npotential buyers, the company said in sale documents today. It
\ndidn't provide an offer price.<\/p>\n
Individuals will be offered 49.1 million shares at 3 ringgit
\napiece, or at least a 3 percent discount to the final
\ninstitutional price.<\/p>\n
The funds will help Bursa, which will become the fourth-
\nlargest publicly traded stock exchange in Asia, install new
\ntrading systems and set up links with exchanges in Singapore,
\nThailand and Indonesia aimed at boosting regional share trading.<\/p>\n
The Malaysian stock market is valued at about $186 billion,
\nranking ninth in the Asia Pacific region.<\/p>\n
\"Bursa is coming to the market at a slight premium to its
\nregional peers, but there are quite a few options for the company
\nto enhance its income,\" said David Ng, who helps manage $395
\nmillion in assets at Hwang-DBS Asset Management Sdn. in Kuala
\nLumpur.<\/p>\n
\"It's a must-have stock supported by decent dividend yields.\"<\/p>\n
Bursa, which will list on the stock exchange next month,
\nexpects net income in the year ending December 2005 to gain 72
\npercent to 60.3 million ringgit, and it plans to pay out at least
\n75 percent of its profit this year as dividends.<\/p>\n
Based on the retail price of 3 ringgit, Bursa shares are
\nvalued at a price-to-earnings ratio of 24.9 times projected 2005
\nearnings, the company said.<\/p>\n
\"Investors are not buying Bursa for growth just yet; they're
\nbuying for a near-term dividend payout,\" said Geoffrey Ng, who
\nhelps manage about $368 million as chief investment officer at
\nPacific Mutual Fund Bhd. in Kuala Lumpur.<\/p>\n
\"It's a really sought-after stock.\"<\/p>\n
Singapore Exchange Ltd., which runs the island state's
\nsecurities and derivatives market, trades at 14.3 times estimated
\nJune 2005 earnings, according to Bloomberg data.<\/p>\n
Australian Stock Exchange Ltd., which runs that country's
\nbiggest exchange, trades at 22.2 times current-year earnings.<\/p>\n
Shares of Australian Stock Exchange have surged fivefold since
\ntheir debut in October 2000 while Hong Kong Exchanges and
\nClearing Ltd. stock has gained the same amount since it began
\ntrading for the first time in June 2000.<\/p>\n
\"It's our challenge to boost trading volumes and draw the
\ninterest of retail investors,\" Bursa Chief Executive Officer
\nYusli Mohamed Yusoff told reporters on Wednesday. \"We're ready to
\nembark on a new journey.\"<\/p>\n
Bursa will decide the price which institutional investors pay
\nfor stock on March 3. It aims to list on the Main Board of the
\nMalaysian stock exchange on March 18.<\/p>\n
Shareholders include the Minister of Finance Inc., the Capital
\nMarket Development Fund and member stockbrokers, each with a 30
\npercent stake. The country's 6,000-odd stock traders hold a 10
\npercent stake.<\/p>\n
The sale is being arranged by CIMB Bhd., Malaysia's biggest
\ninvestment bank, and UBS AG.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bursa-malaysia-to-raise-at-least-105m-in-ipo-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}