KFC is returning to Bursa Malaysia

(Jan 4): Fundraising from Malaysian initial public offerings is poised to rebound from the lowest in 16 years, led by a planned relisting of the local KFC operator, as receding uncertainty and commodity price gains help rekindle demand for riskier assets.

First-time share sales in Malaysia, Southeast Asia’s top destination for new listings less than five years ago, fell to US$305 million ($442 million) in 2016, according to data compiled by Bloomberg. The figure was the lowest level since 2000 and trailed other regional exchanges including Singapore, which hosted US$1.7 billion of IPOs, and Thailand, where US$1.5 billion was raised, the data show.

While a volatile ringgit and slower economic growth hurt IPO volumes last year, fundraising could jump to at least US$2 billion in 2017, according to CIMB Group Holdings, Malaysia’s top IPO arranger. QSR Brands (M) Holdings, the fast-food franchisee backed by CVC Capital Partners, is preparing a US$500 million share sale, people with knowledge of the matter said earlier. Property developer Eco World International said in October it plans to seek more than 2 billion ringgit ($647 million) in an IPO.

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