Malaysia

Around this time last year, I reviewed the dismal performance of the Hong Kong primary markets, and ventured a guess that investors could instead turn en masse to ECM transactions in Malaysia, Singapore, Thailand, Indonesia - and even the Philippines. How wrong I was!

The investment banking arm of RHB Banking Group is tweaking its strategy to boost its presence outside Malaysia, and plans to build on its transaction and commercial banking relationships to win market share. Rashmi Kumar reports.

Two of the pre-IPO investors in Malaysia’s Malakoff Corp have divested their entire residual stake via a MR444m ($105m) block, with the deal buoyed by local demand and strong interest from one domestic pension fund.

China Construction Bank (Asia) has priced a two year dim sum amid a market sentiment that is less than favourable for dim sum issuance. However like other recent deals from state-owned banks, this latest trade was driven more by diplomacy than funding needs.

Asia’s primary debt market is set for a busy end to the month with another four issuers - Citic Envirotech, Korean Air Lines, Powerlong Real Estate Holdings and China Construction Bank Asia all looking to attract international investors with deals of their own on Thursday.

Malaysia’s Red Sena, the first special purpose acquisition company from the food and beverage sector, has garnered an oversubscription for its institutional tranche, giving it visibility on nearly the entire MR400m ($91m) IPO.

Malaysian telecommunications giant Axiata Group ended its five year hiatus from the international bond market on November 14 with a $500m wakala sukuk that was well received by investors.

The Asia ex-Japan bond market sprung to life on November 12 with China Huarong Asset Management, China State Construction Engineering Corp and Beijing Properties opening books for dollar bonds, while Korea Housing Finance Corp (KHFC) opted for a covered bond and Malaysia’s Axiata Group, a sukuk.

Golden Meditech has closed its HK$985.70m ($127.19m) rights issue with shareholders taking up just 69% of the transaction, forcing its underwriter to absorb the remaining shares.

Malaysian telecommunications company Axiata Group has mandated banks for its first Islamic bond in more than three years.

Wenzhou Kangning Hospital Co is set to pre-market its $100m Hong Kong IPO on October 26, with investor education slated to run for about two weeks before bookbuilding starts.

The Securities Commission Malaysia (SC) is fine-tuning its rules for IPOs of mineral, oil and gas exploration or extraction (MOG) firms, following in the footsteps of several bourses in the region. The proposal brings Malaysia closer to international standards for MOG listings, but has elicited mixed responses from industry participants, writes John Loh.