IPO target out of reach with tepid Malaysian market

Singapore

IN an unusually poor year for initial public offerings, funds raised via public share sales on Bursa Malaysia are set to fall far short of the RM13 billion (S$4.2 billion) target - or even the RM5.9 billion raised last year - as prospective offerors gauge market appetite to be too weak.

With only two months to the year left, the total raised is likely to be only about a third of the target despite initial optimism that companies including state-owned power operator Edra Global Energy would keep the IPO market vibrant. Edra was expected to raise some US$3 billion in its public share sale.