SC chairman Datuk Syed Zaid Albar said although the Covid-19 pandemic and its disruption to business activities have affected sentiment, the capital market continues to be a key source of financing for companies.
“An IPO is still seen as a good way for companies to raise funds for the expansion of their businesses as well as to improve their corporate standing. “We see continued economic recovery, which will lead to increased private investment as business confidence increases, as well as the growth of quasi-government corporate bonds in 2021 amid the resumption of large infrastructure projects, ” Kamaruddin said.
Nevertheless, he conceded that significant uncertainties still remain, and the overall recovery would likely be gradual and uneven across all sectors. Corporate bond issuances fell significantly, with total new issuances down 21% year-on-year to RM104.6bil, while the total funds raised in the equity market rose 52% y-o-y to RM10bil, of which RM2bil was raised via 19 IPOs and RM8bil through secondary fundraising.