Malaysia has RM3bn IPO pipeline as of 2H22, says Maybank IB

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KUALA LUMPUR (June 8): Maybank Investment Bank (Maybank IB) expects Malaysia’s initial public offering (IPO) pipeline to reach around RM3 billion in the second half of 2022 (2H22), chief executive Datuk said Fad’l Mohamed.

Across the equity capital market (ECM), the investment bank is also seeing some traction in the mergers and acquisitions (M&A) and private equity (PE) space, Fad’l said during an interview. a press conference on the sidelines of the Maybank Invest Asean 2022 conference. .

“There’s still a lot of trading activity going on in the market,” he said. “There is a strong ECM pipeline ahead, year-to-date we have seen around nine IPOs.

“Looking ahead in 2H22, we see a total value of approximately RM3 billion on ECM across sectors such as consumer, retail, general industry, TMT (technology, media and telecommunications ) and transportation and logistics,” he added.

“On the M&A side, we are seeing a lot of restructuring activity, especially among some GLCs and GLICs… We are seeing strong traction in the PE space, [with] buy-sell opportunities ahead, as well as consolidation in the country,” he said.

Meanwhile, the local debt capital market (DCM) also remained stable with an annual outlook of RM110 billion, Fad’l said. This compares to RM114 billion recorded in 2021, according to data from the Securities Commission Malaysia.

“On DCM, we have RM6.8 billion potential coming in 2H22, and ESG potential[-linked] alone exceeds RM6 billion.

“We have completed 33 issuances totaling RM6.3 billion…of which sustainable issuances alone account for RM2.1 billion,” he added.

Discussing sustainability-related instruments, Fad’l said the investment bank sees opportunities for key projects falling into the category, coupled with ample liquidity looking for such green assets.

“The other aspect is for some companies looking for sustainability-related transition instruments. An attractive proposition for many clients to raise capital with clear objectives in terms of ESG trajectory.

“And on the demand side, many investors are looking into this asset class and continue to have a strong appetite for ESG-related papers, sustainability-related instruments,” he said. declared.

“With the economic recovery, with the refinancing of major maturities this year and next, the environment is definitely conducive to raising capital,” he added.

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