Page 31 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
The SC also conducted several thematic assessments on topics such as the Silicon Valley Bank (SVB) collapse, Additional-Tier 1 (AT1) bonds, funds stress test and investor fund flows. In the first quarter of 2024, the SC will publish its second Capital Market Stability Review which contains an overall assessment of risks in the Malaysian capital market and a discussion on relevant drivers of systemic risk.1
CAPITAL-RAISING Equity
In 2023, equity fundraisings continued to register a higher number of equity applications submitted to the SC, compared to 2022.
TABLE 1
Equity applications
TABLE 2
Service charter performance – equity applications
TABLE 3
Equity prospectuses and other documents
Out of the 22 equity applications received by the SC in 2023, nine of which were for initial public offerings (IPOs), two in relation to a proposed acquisition resulting in a significant change of business direction or policy, and 11 for transfer of listings to the Main Market of Bursa Malaysia Bhd (Bursa Malaysia) (Table 1). A further seven applications had been brought forward from 2022 (Please refer to Table 1A on page 61 for Detailed Statistics).
Out of this total, 18 applications were considered while two were withdrawn and nine remained under review as at year-end. On average, five rounds of queries were raised per equity application considered, 99% of which were raised within time charter (Table 2).
The SC also registered 17 equity prospectuses in 2023, comprising six IPO prospectuses and 11 abridged prospectuses in relation to fundraising by listed corporations (Table 3).
Corporate Bonds and Sukuk
TABLE 4
Corporate bonds and sukuk lodgements
TABLE 5
Corporate bonds and sukuk applications
No. of applications
2023
2022
Received during the year
22
20
Considered
18
18
Approved
18
16
Lodgements during the year
2023
2022
No. of lodgements
64
62
Measure
Target
Results
2023
2022
No. of equity applications processed within time charter2
90%
99%
100%
Applications during the year
2023
2022
No. of applications
2
2
Considered
2
2
Approved
2
2
In 2023, the number of corporate bonds and sukuk lodgements3 remained stable with 64 corporate bonds and sukuk lodgements made with the SC compared to 62 lodgements in the previous year (Table 4). Sukuk accounted for 67% of the number of lodgements, as well as 57% of the nominal value in relation to ringgit- denominated instruments (sukuk RM98.26 billion; total
Equity applications
2023
2022
Prospectus
6
19
Abridged prospectus
11
15
TOTAL
17
34
1 2
The Capital Market Stability Review is available on https://www.sc.com.my/resources/cmsr. Based on number of queries issued:
(i) first round of query raised within 10 Market Days (MDs) from receipt of complete submission; and (ii) subsequent queries raised within five MDs from receipt of complete replies.
3
Pursuant to the Lodge and Launch Framework for Unlisted Capital Market Products (LOLA Framework).
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 29