Bursa attracting special purpose acquisition companies

From Star Online: Business
16th April 2013

Blank cheque IPOs bring hope, caution to M’sia

KUALA LUMPUR: Malaysia's bull market is seeing a type of initial public offering (IPO), still fairly new to Asia, that takes a special kind of company public: one with no profits, revenues or assets.

CLIQ Energy Bhd last week became the second such firm, known as a special purpose acquisition company (SPAC), to list in Kuala Lumpur, with three more preparing for IPOs.

The spurt comes after Malaysian equities rose for four straight years, including a banner year for IPOs in 2012, and as investors anticipate a jump in mergers and acquisitions in South-East Asia.

But SPACs have historically been high-risk, high-reward investments.

Is the gold rush over?

From Star Online: Business

13th April 2013

"Appetite for the precious commodity have waned as some semblance of stability returns to the global economy, whereby fears of high inflation seem to have diminished, and the US dollar has strengthened. This is evident in the declining trend of gold prices over the last few months."

High-rollers from China make Genting S'pore unit and others see red

From Star Online: Business
10th April 2013

"The more you start to see the increase in their receivables, what you then start to see coming through in their results later on, is possible deterioration in their earnings quality and also including cash flow generation,"

SINGAPORE: High-rollers get lavish treatment and hefty credit lines at Singapore's two casinos, like any other gaming house in the world. But here, more of them skip town without paying their debt, a matter of increasing concern for investors.

Three years after Singapore allowed casinos to open, Genting Singapore PLC's Resorts World Sentosa and Las Vegas Sands Corp's Marina Bay Sands have become the world's most profitable. Chinese nationals account for around half of the VIP gaming volume at their tables.

Higher rerating in the pipeline for Iskandar?

From Star Online: Business
1st April 2013

PETALING JAYA: Property players with exposure to Iskandar Malaysia could see a rerating in the pipeline, following the planned listing of Iskandar Waterfront Holdings Sdn Bhd (IWH) in the fourth quarter of this year.

Maybank IB Research analyst Wong Wei Sum said better connectivity in the area via the rapid transit system (RTS) between Singapore and Johor and the KL-Singapore high speed rail, coupled with rising business activities and an increasing population should further lift land and property prices in Iskandar.

Wong highlighted in the report on property developers in Iskandar that the key beneficiaries include UEM Land Holdings Bhd, Sunway Bhd,Genting Plantations Bhd, IJM Land Bhd, S P Setia Bhd, Dijaya Corp Bhd, Crescendo Corp Bhd, Eastern & Oriental Bhd and KSL Holdings Bhd.