Malaysia Market Watch 5th July 2012

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(Reuters) – National Bank of Abu Dhabi , the largest lender by market capitalization in the United Arab Emirates, has opened its first branch in Malaysia, expanding the bank’s global operations to 14 countries.

The wholly-owned subsidiary called National Bank of Abu Dhabi Malaysia Berhad is also its first branch in south-east Asia, the company said in a statement.
The bank will offer wholesale banking services.

“We are strategically positioned to bridge Arab business interests with Malaysia and to promote bilateral trade and investments,” Leong See Meng, CEO of NBAD – Malaysia, said. (Reporting By Stanley Carvalho; Editing by Rachna Uppal)


IHH Healthcare Bhd. (IHH), Asia’s biggest hospital operator, plans to raise as much as 6.4 billion ringgit ($2 billion) in its initial public offering in Malaysia and Singapore, two people familiar with the matter said yesterday.

The Kuala Lumpur-based company, which has signed up 22 so- called cornerstone investors including Blackrock Inc., set an indicative price range of 2.67 ringgit to 2.85 ringgit per share for institutions, said the people, who declined to be named as the information is private. IHH is controlled by Malaysia’s state investment company Khazanah Nasional Bhd.

Malaysia has withstood a global IPO slump, with Felda Global Ventures Holdings Bhd. (FGV) raising $3.3 billion last month in the world’s largest first-time sale since Facebook Inc. Palm oil producer Felda jumped 16 percent in its Kuala Lumpur debut last week after institutional demand for shares exceeded supply by more than 40 times in the offering.
“The government may want to ride the good momentum of Felda, which had a very successful IPO,” said Josef Schuster, founder of Ipox Schuster LLC, which invests in global IPOs. “It’s also a value play as most of these privatization deals are priced at a discount like what we saw in Felda.”

The benchmark FTSE Bursa Malaysia KLCI Index rose 1.2 percent in June, its steepest monthly gain since March, and closed at a record today amid resilient domestic demand and private investment. Domestic equity offerings jumped by almost threefold in the first half of this year to 10.8 billion ringgit, with Malayan Banking Bhd. leading Bloomberg’s underwriter league table with a 25 percent market share.

Facebook Disappoints
Globally, IPOs fell 34 percent to $41.3 billion last quarter as Facebook’s disappointing debut and worsening economic conditions rattled investors, causing companies including Graff Diamonds Corp. to halt or delay offerings elsewhere.

“Markets will be markets, but we are confident with the timing,” Nazir Razak, chief executive officer of IPO manager CIMB Group Holdings Bhd., told reporters in Kuala Lumpur today. “We have good momentum here and people are looking at a long- term investment story.”

Najib Razak, Malaysia’s Prime Minister and Nazir’s brother, formally released the prospectus in Kuala Lumpur today. Ahmad Shahizam Mohd Shariff, IHH’s head of business development, declined to comment on the price range, according to a spokeswoman for the company.

– Yahoo Finance