Capital markets news summary for Wed 8 Mar 2023

Capital markets news summary for Wed 8 Mar 2023

Oppstar shares for Malaysian public oversubscribed 77 times

The company will be listed on the ACE Market on 15 Mar. It plans to raise RM104.25m in the public share sale of 165.5m shares or 26% of its enlarged capital at 63 sen per share. 31.81m shares for the Malaysian public received 39,103 applications for 2.48b shares or RM1.56b. For the Bumiputra category, 17,257 applications for 749.26m shares or 46.11 times oversubscription was received. For the other Malaysian public category, 21,846 applications for 1.73b shares or 108 times oversubscription was received. The other categories were also fully subscribed. The company provides integrated circuit design services covering front-end design, back-end design and complete turnkey solutions. It serves the telecommunications, industrial electronics, automotive and consumer electronics industries. Affin Hwang is principal adviser, sponsor, sole placement agent and sole underwriter.

Icon Offshore proposes capital reduction and share consolidation

In order to eliminate its accumulated losses of RM822.41m, the company intends to net the losses off against its share capital of RM1.15b. The company’s share capital will be reduced to RM317.32m. Its shares will be consolidated for every 5 shares into 1 share or from 2.71b shares to 541.31m. The exercise will improve the company’s capital base and allow it to pay dividends from future earnings. An extraordinary general meeting will be convened to vote on the proposal. Bursa’s approval is also required. Subsequently, the company will obtain a High Court order for the capital reduction. The company’s share price would theoretically be 47.5 sen, or 5 times the current price of 9.5 sen. The exercise will be completed in 3Q2023.

Global Vision Logistics signs RM1.5b SRI sukuk for logistics hub

ASEAN Green Sustainable and Responsible Investment (SRI) sukuk are meant for funding activities related to projects that meet the UN’s Sustainable Development Goals. These sukuk attract investment into green, social, sustainable and waqf projects. Global Vision’s SRI sukuk proceeds will be used to develop the Shah Alam International Logistics Hub (SAILH), the first GreenRE Silver Rating 2-certified logistics hub in Malaysia and one of ASEAN’s largest. The 1st tranche of RM620m will be issued in 2Q2023. UOB acts as the principal adviser, lead arranger and joint lead manager while AmInvestment Bank is joint lead manager for the unrated sukuk. The SAILH will be a 4-storey warehouse complex on 71 acres of land. Construction will be completed in phases by 2028 with Phase 1 due to open in mid-2025 with total net lettable area of 2.8m square feet.

China’s new national bureau to manage technology data resources

In a move to counter the US’ curbs on technology imports, China will set up a new body to protect its data. The national bureau – under the Ministry of Science and Technology – will manage and police data resources generated across the country including by the internet industry. The ministry itself will formulate strategic policies to reduce reliance on American technology. Chinese officials have mentioned the need to accelerate the development of critical technologies to fend off US sanctions and achieve self-sufficiency. They want to create chokepoint technologies such as chipmaking machines and jet engines to secure the supply chain and wield as a bargaining chip against the West. The country’s patent regulator will also report to the State Council in order to improve its ability to create and protect intellectual property.

China plans a new oversight body to regulate the financial sector

This is the latest development in forcing greater cooperation from the USD60t financial system and follows the earlier merger of the banking and insurance watchdogs. The China Banking and Insurance Regulatory Commission will cease to exist after the overhaul. Its role will be given to the new body, which will cover blind spots and crack down on violations. The government expects it to solve long-standing conflicts and issues in the financial area. The China Securities Regulatory Commission will be elevated to become a government agency directly under the State Council, responsible also for the oversight of corporate bond issuance.

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