06/02/2025

BIZ & FINANCE THURSDAY | FEB 6, 2025

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IILM’s US$1.05b sukuk attracts strong demand

KUALA LUMPUR: RichTech Digital Bhd, a company involved in the distribution of electronic reloads and provision of bill payment services in Malaysia, reported that the share allocation to the Malaysian public from its initial public offering (IPO) has been oversubscribed by 245.42 times. The firm’s IPO involves a public issue of 54.66 million new shares (issue shares) and an offer for sale of 25.31 million existing shares (offer shares). The allocation of issue shares are offered: for Malaysian public via balloting (10.12 million to be equally distributed between bumiputra and non bumiputra investors; 5% of the enlarged issued share capital); for eligible directors and employees (1.55 million; 0.77% of the enlarged issued share capital); private placement to selected investors (42.99 million; 21.23% of the enlarged issued share capital) and offer for sale via private placement to selected investors (25.31 million offer shares; 12.5% of the enlarged issued share capital). A total of 24,237 applications for 2,494,534,300 issue shares with a value of RM623.63 million were received from the Malaysian public, representing an overall oversubscription rate of 245.42 times. Of this, a total of 12,601 applications for 1,060,713,600 issue shares were received for the bumiputra portion, representing an oversubscription rate of 208.57 times. For the remaining Malaysian public portion, a total of 11,636 applications for 1,433,820,700 issue shares were received, representing an oversubscription rate of 282.28 times. The 1.55 million issue shares allocated to eligible directors and employees, as well as the 42.99 million issue shares and 25.31 million offer shares offered via private placement, were fully subscribed. AMBANK PROVIDES SUPPLY CHAIN FINANCING TO HUAWEI KUALA LUMPUR: AmBank has approved RM120 million financing facility to Huawei to support its operations in Malaysia. The facility forms a critical part of AmBank’s supply chain financing framework, designed to provide vendor financing support to Huawei. AmBank Group business banking managing director Christopher Yap said: “This new facility highlights our ongoing commitment to empowering key industry players like Huawei in driving Malaysia’s technological advancement. By supporting Huawei through supply chain financing, we also aim to facilitate the successful deployment of the second 5G network, further solidifying Malaysia’s position as a regional leader in connectivity and innovation.” As a partner in Huawei’s ecosystem, AmBank’s support underscores the bank’s focus on fostering strategic partnerships that create value for businesses and drive economic growth. KUALA LUMPUR: ITMAX System Bhd’s (an artificial intelligence-powered integrated digital infrastructure service provider) unit Southmax Sdn Bhd has been appointed by Pontian Municipal Council as the smart parking operator for outdoor parking spaces in the Pontian area. The appointment effective from Feb 1 spans a duration of 15 years under a revenue sharing model, where by Southmax will receive 70% of the revenue generated from parking collections and compounds through its application, Parkmax@JOHOR. ITMAX System managing director/CEO William Tan Wei Lun said, “We are thrilled to extend our smart parking solutions to Pontian, marking our sixth appointment as a smart parking system operator in Johor. With Johor’s rapid digital transformation, we are committed to further expanding our footprint across the state.” RichTech Digital IPO shares oversubscribed 245.4 times ITMAX WINS PONTIAN SMART PARKING DEAL

tailored solutions that will help and facilitate global Islamic financial institutions to manage their liquidity positions effectively and proactively. The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated US$6 billion short-term sukuk issuance programme. The total amount of IILM sukuk outstanding stands at US$ 4.14 billion. The IILM’s short-term sukuk is distributed by a diversified and growing network of 12 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank. The IILM is a regular issuer of short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.

o Global trade tensions have pushed investors to favour safer options such as short-term Islamic bonds

KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term syariah-compliant financial instruments, has completed the reissuance of an aggregate US$1.05 billion short-term sukuk across three different tenors of one, three, and six-month respectively. The three series were priced competitively at 4.44% for US$400 million for 1-month tenor; 4.45% for US$400 million for 3-month tenor; and 4.4% for US$250 million for 6-month tenor. The IILM’s sukuk reissuance yesterday saw a competitive tender amongst the primary dealers and investors globally, with a strong orderbook of US$2.5 billion, representing an impressive average bid-to-cover ratio 238%. IILM CEO Mohamad Safri Shahul Hamid said the outcome of yesterday’s hugely successful auction clearly underscores the

unwavering confidence of global Islamic investors in the IILM’s sukuk as high quality syariah-compliant liquidity solutions. He added the impressive demand across all the tenors, despite all the events that are unfolding globally, clearly reaffirms the critical role their instruments play in providing stability and flexibility for Islamic financial institutions globally. “The heightened global trade tensions have shifted investors’ preference (from riskier assets) towards safer instruments such as the IILM’s short-term sukuk, evidenced by the robust bid-to-cover ratio that has allowed us to price today’s offerings within our expectations,” said Mohamad Safri. He added that they are extremely pleased with the success of yesterday’s auction and hopeful that it will pave the way for them to continue fulfilling their mandate in delivering

BR I E F S

Economist: Malaysia must act proactively to manage trade risks KUALA LUMPUR: Malaysia must adopt a proactive approach to mitigate risks and capitalise on emerging opportunities as the global trade landscape shifts due to the import tariff hike by the US, said an economist. strengthen its domestic capacity through investments in human capital development, particularly in education, healthcare, and infrastructure, adding that this is crucial to improving Malaysia’s competitiveness. “A well educated workforce and robust infrastructure will attract foreign investment and enhance economic diversification,” he noted. announced the imposition of a 25% import tariff on Canada and Mexico, alongside a 10% tariff on China. However, Trump has since agreed to pause the tariff imposition towards Mexico and Canada for 30 days. Malaysia should expand its free trade agreements by pursuing both bilateral and multilateral deals to boost economic resilience. – UNSPLASH PIX

Meanwhile, Afzanizam said the US dollar ringgit exchange is expected to fluctuate between RM4.40 and RM4.50, with immediate support at RM4.45 and resistance at RM4.36. “A crucial event to monitor is the US Federal Reserve’s response to these developments, as it will shape future monetary policy. The next Federal Open Market Committee meeting scheduled for March 18-19, will provide fresh economic forecasts and markets are likely to experience heightened volatility leading up to this meeting,” he added.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the country should expand its free trade agreements (FTAs) by pursuing both bilateral and multilateral trade agreements to strengthen economic resilience. “Engaging with trade blocs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership will ensure continued access to diverse markets,” he told Bernama recently. Mohd Afzanizam said Malaysia should

In addition, he advised that Malaysia has to enhance its trade diversification by expanding its trade portfolio through engaging in value added industries, digital economy initiatives, and green energy investments. “This will reduce dependency on traditional manufacturing exports and create new growth avenues in high tech and sustainable sectors,” he said. Recently, US President Donald Trump