KUALA LUMPUR (Dec 8): Unit Peneraju Agenda Bumiputera (Teraju), which fell short of its target of listing Bumiputera-controlled companies this year, is targeting to list up to four companies next year.  

Teraju's chief executive officer (CEO) Datuk Husni Salleh said today that the unit’s target was to list up to three companies this year, under the Jejak Jaya Bumiputera scheme (SJJB); but only one company, Sedania Innovator Bhd, managed to be listed on the ACE Market of Bursa Malaysia.

“We were targeting three companies, but the market was soft, so we only managed to list only one (company), but it was a good one,” he told reporters after a briefing on the Bumiputera Economic Empowerment Report Card 2015.

“So we are hoping the market can stabilise a little bit over the next couple of years, because we have three or four listings that are coming up.

“About three companies are in the final stages of listing. They have obtained approvals and are just waiting for the right time to go to the market,” he added.

Teraju Financial Services and Special Projects director Junady Nawawi said two of the targeted listings this year were deferred, as market conditions were not strong to support it.

“They would not have fetched the level of valuations that these companies were aspiring to achieve,” he said.

“But if you looked at the fundamentals of the companies, they were ready. It was just a matter of catching the market at the right time,” he added.

Junady said the companies that are targeted for initial public offerings (IPOs) next year, are services-based companies in sectors such as oil and gas, information and communication technologies, as well as infrastructure.

According to Teraju, a total of 11 Bumiputera-controlled companies were listed on Bursa Malaysia since 2007, with two companies — Prestariang Bhd and Datasonic Group Bhd — having hit the RM1 billion mark, in terms of market capitalisation.

Teraju also said the combined market capitalisation of all 11 listed companies totalled RM5.5 billion in August this year, and it aims to double the amount over the next two years.

Husni said Teraju has 40 companies in the pipeline for listing over the next two to three years, but is relying on the right market conditions for the IPOs to be implemented.

“We have to find the right time. Although we have companies in the pipeline, we have to take advice from the advisors, investment bankers and all that in terms of timing to go to the market,” he said.          

The SJJB programme is co-handled by Teraju, and Ekuiti Nasional Bhd — a private equity company owned by the Malaysian government, whereby comprehensive advisory support services is provided to Bumiputera companies, with the potential for listing on Bursa Malaysia.

This includes the preparation of value creation plans, funding avenues and drafting of IPO plans.

On the Bumiputera Economic Empowerment Report Card 2015, a total of RM36.06 billion worth of contracts out of RM78.84 billion worth of investments under 12 mega projects, have been earmarked for Bumiputera companies.

The 12 projects include the Mass Rapid Transit (MRT) Line 1 and MRT Line 2, Warisan Merdeka Tower, the Taiping-Banting West Coast Expressway, Bukit Bintang City Centre, Asia Aerospace City and the Sungai Besi-Ulu Kelang Elevated Expressway.

The contracts will be disbursed under the Carve-Out and Compete programme helmed by Teraju, which provides opportunity to Bumiputera companies to be awarded contracts from mega projects.

Teraju has also generated RM6.6 billion in value through the Vendor Development Programme which aims to develop entrepreneurs to become competitive suppliers and manufacturers of component or services at domestic and global markets

Teraju also reported that a total of RM164.4 million was generated from asset disposals of government-linked investment companies (GLICs) and government-linked companies (GLCs).

From 2011 to 2015, UDA Holdings Bhd developed 20,149 units of affordable housing, specifically for the Bumiputera community.

As of 2015, the ownership of Amanah Hartanah Bumiputera (AHB) assets through PHB, amounts to RM8.5 billion, the report stated.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)