Wednesday, July 4, 2012

We should just stop claiming Malaysia as Top IPO market for Asia

While the facts is true for 2012, there is still 6 months to go. We have 2 large IPOs in FGVH and IHH both initiated by the government. I read Astro is coming back. Well, we are doing well on paper due to some factors.

First, the IPO market for this year is very soft, globally. Many companies have postponed their IPOs in Singapore and Hong Kong. We will never be anywhere near Hong Kong, a market where Chinese government helps to promote.

In fact, the IHH IPO is a dual market listing which includes Singapore. If Malaysia is a strong destination, we do not need to do a dual listing with our neighbor, a market which has same trading hours as ours. We might as well go NYSE or LSE direct and KL as an alternative destination.

How many more times Khazanah can create the same as in go around acquiring and list the assembled companies in Malaysia? Are they thinking of the "The Avengers" reborn?

We can be proud of the number of cornerstones involved - but anyway, the two large IPO listings shares are probably cornered anyway. Look at the limited public retail float.

The fact of the matter is that the attractiveness of our market is quite in a sad state. My earlier article on building ACE market is a case in point. Beyond CIMB, our investment bankers are not confident to carry our companies to IPOs. If we can't compete with Hong Kong, we might as well go small. You cannot do an Astro and Maxis - list and delist and list again too many times. There are only so few tycoons who can help.

How many investment bankers are doing well? CIMB, Maybank, CIMB, Maybank?

Let's not polish our own shoes.


Anonymous said...

Don't be so critical and sounds negative. Give some credit to them for doing some good IPO work for investors.

felicity said...

Ya, should not be so critical of these things. INvestment is supposed be looking for winners not losers.