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Question 6 (a) KUALA LUMPUR: Malaysia saw 13 initial public offerings (IPOS) in the first half (1H) of 2021, with RM395 million in proceeds
Question 6 (a) KUALA LUMPUR: Malaysia saw 13 initial public offerings (IPOS) in the first half (1H) of 2021, with RM395 million in proceeds raised, which amounted to RM1.5 billion in IPO market capitalisation on Bursa Malaysia. According to the leading global provider of audit and assurance Deloitte's Malaysia IPO Capital Market 2021 Mid- Year Report, the IPOS in the 1H registered a 102 per cent increase in funds raised compared to 1H 2020, which had seven IPOs with RM196 million proceeds and an IPO market capitalisation of RM0.85 billion. "Of the 13 listings in 1H 2021, one main market IPO raised a total of RM75 million, seven ACE market IPOS raised a total of RM304 million, and five LEAP Market IPOS raised a total of RM16 million. "The funds raised in 1H 2020 H1 were mainly contributed by one consumer business on the Main Market which raised a total of RM113 million. (source: https://www.nst.com.my/business) Based on the above scenario, you are required to: i. Discuss the advantages that may be received by the companies above. (8 marks)
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