Malaysia | More firms see opportunities with listing in Hong Kong

Hong Kong Stock Exchange has always been considered as the bellwether for initial public offering (IPO) in the global market, as it plays a leading role as an important gateway for companies to reach a wider pool of investors. As more Malaysian companies are expanding their regional businesses, it seems that they are also keen in floating their shares in Hong Kong, Xinhua news agency reported. 

The most recent example was BGMC, the first Malaysia-
based construction services company that made its debut in Hong Kong last month. BGMC’s management told Xinhua that it sees Hong Kong’s stock market as one with higher recognition among global investors, as it is an Asian financial hub. “Listing in Hong Kong helps differentiate the group from its peers in Malaysia and contribute to the group’s future expansion and business growth both in Malaysia and overseas,” the management added.

For Wong Teck Meng, chief executive officer of Malaysia’s fund management company Areca Capital, Hong Kong as a financial hub also has a more liberalized and advanced stock market. He sees the trend to continue as Hong Kong remains an attractive platform for Malaysian companies to grow their regional platform. Besides, Malaysian companies that listed in Hong Kong tend to have higher valuations, he said.

His views have been shared with Kong Hon Kong, founder of Nirvana Asia Group, the largest integrated bereavement care service provider in Asia with a presence in China, Thailand, Vietnam, Singapore and Indonesia.”When I listed Nirvana in Hong Kong, the share was traded as much as 20 times of its price to earnings ratios (P/Es). But when it was listed in Malaysia, the average P/E of the share was only 10 times,” Kong told Xinhua.

The recently listed company BGMC also noted it would enhance the group’s profile among potential customers in China who are eyeing the Southeast Asian markets in light of the Belt and Road Initiative. Proposed by China in 2013, the Belt and Road Initiative aims to build trade and infrastructure networks connecting Asia with Europe and Africa on and beyond the ancient Silk Road routes.  MDT/Xinhua