More Listings?

Bursa expects 70 new listings this year
Bursa Malaysia chief executive officer Yusli Mohamed Yusoff says the exchange is taking steps to improve the quality of listed companies by improving investor relations via analysts briefings and roadshows

hmm..

• “We have a range of very good companies and a few not so good companies and a lot in the middle range ... we want a good mix to give investors interest and confidence in the market,” Yusli told Business Times recently.

A range of very good companies and a few not so good companies and a lot in the middle range....

Do you agree with his statement?

• BURSA Malaysia Bhd expects 70 initial public offerings this year, comprising companies in all sectors... Bursa Malaysia currently has more than 1,000 companies listed on the exchange.

70 new IPOs this year? Waaah... and not forgetting BM has already more than 1,000 listed companies...

Another pump-priming example of BM thinking as a businessman? The more listed companies means the more possibility of BM making more money. But in all honesty, all there so many 'qualified' companies in Malaysia? I rather not see companies being listed just for the sake of BM meeting its numbers. Don't you?

• At the same time, the regulator is taking steps to improve the quality of listed companies by improving investor relations via analysts briefings and roadshows.“When investors have a good idea of a company, they will know its true value,” said Yusli.

What would you want to see?

Me? I would like to see much better corporate governance and more important, I think BM should clamp down on corporate directors making overly optimistic projections in the news media. It's terribly shambolical to see a company director making an outright bullish statement about their company prospects, while the company's financial performance utterly contradicts their statements!

And what them private placements?

Another complicated issue.. depending on who we are.. for a trader, this issue is not too bad and it could even represent trading opportunities but for the minority shareholders, such issue is simply not fair as the private placement is executed at their expense. More shares or more slices of the cake are simply offered to others and often at huge discounts, which not only dilutes them of their earnings per share but also places them at a cost disadvantage when compared to these so-called placement investors. Which really makes the private placement more of a privilaged placement issue!