Investment & Market Trends

Indonesia will give some listed companies up to three years to raise their public float to at least 15%, as part of ongoing reforms to improve transparency and market liquidity. The Indonesia Stock Exchange (IDX) said companies with a market value under 5 trillion rupiah (US$295 million/RM1.2 billion) must meet the minimum public float requirement by March 31, 2029. Firms valued above 5 trillion rupiah with a free float below 12.5% must first reach 12.5% by March 31, 2027, then 15% a year later. Companies with free floats already between 12.5% and 15% must hit 15% by March 31, 2027. The new rules follow months of consultation as Indonesian authorities aim to avoid a potential MSCI market downgrade, which earlier raised concerns about investability and triggered a sharp market selloff. “We see this as a constructive move,” said Felix Darmawan, analyst at PT BCA Sekuritas. “The timeline strikes a balance — giving companies time to adjust while enhancing liquidity and broader investor participation.” The IDX has also increased the minimum float for IPOs to 15–25%, depending on company size, up from the previous 10–20% range.

TCL Electronics Holdings Ltd has agreed to acquire a majority stake in Sony Group Corp’s global home entertainment business, strengthening the Chinese company’s push to expand overseas. Sony has focused on expanding its portfolio of intellectual property assets — anime, live-action film, music and sports broadcasts — while trimming consumer electronics. Under the deal, TCL will pay 75.4 billion yen for a 51% stake in a newly formed joint venture that will house Sony’s home entertainment operations, including Bravia televisions. Sony will retain the remaining 49% stake. The business covers research and development, design, manufacturing, product sales, as well as home audio equipment, according to a statement released Tuesday. As part of the strategic partnership, TCL will also acquire Sony’s manufacturing subsidiary, Sony EMCS (Malaysia) Sdn Bhd (SOEM). The company added that discussions are ongoing regarding a potential acquisition of all or part of Sony’s China-based manufacturing unit, Shanghai Suoguang Visual Products Co (SSVE). The enterprise value of the businesses included in the joint venture and the SOEM unit, excluding the SSVE operations, stands at 102.8 billion yen. The final purchase price will be subject to adjustments for net debt and working capital upon completion. The collaboration reflects Sony’s continued shift toward expanding its intellectual property portfolio — including anime, films, music and sports broadcasting — while scaling back certain consumer electronics operations. Meanwhile, TCL, one of China’s largest electronics manufacturers, has been pursuing international growth and aims to strengthen its presence in the global television market. The two companies first announced plans in January to establish a joint venture for Sony’s home entertainment business. The venture is expected to begin operations in April 2027, producing televisions under the Sony and Bravia brands while utilising TCL’s display technology. Following the announcement, TCL shares surged nearly 13% on Wednesday morning, bringing its year-to-date gain to about 38% and valuing the company at approximately US$4.6 billion. Sony’s shares also rose as much as 5.3% in Tokyo, trimming its losses for 2026 and giving the group a market capitalisation of around US$131 billion.

5E Resources Holdings Bhd is targeting a listing on the ACE Market of Bursa Malaysia on April 15, as the waste management services provider moves forward with its initial public offering (IPO). In a statement on Friday, the company said it expects to launch its prospectus and open the IPO for subscription on March 30. The exercise will involve the issuance of 304.5 million new ordinary shares. Of this total, 77 million shares will be made available to the Malaysian public, while 35 million shares will be allocated to eligible directors, employees, and individuals who have contributed to the group’s growth. The remaining 192.5 million new shares will be placed out via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry. In addition, the IPO will also include an offer for sale of 154 million existing shares through private placement to selected investors. Proceeds from the IPO will primarily be used to fund the construction of the group’s new scheduled waste management facility in Perak, as well as the acquisition of plant and equipment for the project. The company is also expanding its PLO 321 facility in Johor Bahru, located adjacent to its existing scheduled waste management operations, with construction expected to support increased processing capacity. The Johor Bahru expansion is targeted to commence operations in the second half of 2026. The planned Perak facility is expected to further enhance the group’s overall scheduled waste management capacity, allowing it to handle larger volumes and a broader range of scheduled wastes. This expansion is anticipated to contribute positively to the group’s long-term financial performance. Construction of the Perak facility is slated for completion in the second half of 2029, with operations expected to begin in the first half of 2030. The remaining IPO proceeds will be used for working capital and to support the group’s operational funding requirements as it continues to scale its business. TA Securities Holdings Bhd has been appointed as principal adviser, sponsor, underwriter, and placement agent for the IPO.

Taiwan’s SinoPac Bank has approved a merger with King’s Town Bank, according to an exchange filing released late Friday by their parent company, SinoPac Financial Holdings. The proposed transaction is part of the group’s broader strategy to consolidate operations, expand market share, and strengthen its position in Taiwan’s competitive banking sector. Under the plan, SinoPac Bank will issue 1.865 billion new common shares priced at NT$24 each, alongside a cash component, to acquire all shares of King’s Town Bank. Both lenders are wholly owned by SinoPac Financial Holdings, and the move is intended to streamline the group’s banking structure while enhancing operational efficiency. The filing noted that the share issuance, combined with cash consideration, will facilitate the full integration of King’s Town Bank into SinoPac Bank. Following the merger, SinoPac Bank is expected to become the fifth-largest privately owned lender in Taiwan, with assets under management reaching approximately NT$3.2 trillion (US$100 billion), according to local media reports. The enlarged entity is also projected to benefit from a broader geographic footprint, improved capital strength, and a more diversified loan portfolio. The deal aims to integrate both banks’ branch networks and customer bases, allowing the combined institution to leverage King’s Town Bank’s strengths in corporate banking and financial market businesses, while complementing SinoPac Bank’s existing retail and wealth management capabilities. The consolidation is expected to create synergies across product offerings, risk management, and operational infrastructure. SinoPac Financial Holdings had earlier approved a share-swap arrangement in 2024 to acquire King’s Town Bank as part of its long-term plan to scale up assets and improve competitiveness. The merger represents a continuation of that strategy, positioning the group to better capture growth opportunities in corporate lending, capital markets, and cross-border financial services. The move also comes amid broader efforts by Taiwanese regulators to strengthen the domestic financial industry and diversify the economy beyond its heavy reliance on the technology sector. Industry consolidation has been encouraged as a means to build larger, more resilient financial institutions capable of competing regionally while supporting domestic economic development.

Bursa Malaysia and Hong Kong Exchanges and Clearing Ltd (HKEX) have signed a memorandum of understanding (MoU) aimed at deepening collaboration, enhancing regional market connectivity, and unlocking cross-border investment opportunities. The MoU paves the way for more cross-border corporate activities between Malaysia and Hong Kong, including potential dual listings. “One key benefit of dual listings is to make the process seamless and cost-efficient. Malaysian companies can use HKEX as a secondary market, which we hope will soon become a reality,” said Datuk Fad’l Mohamed, CEO of Bursa Malaysia, at the signing press conference. As the first initiative under this partnership, Bursa Malaysia and HKEX unveiled the HKEX Bursa Malaysia Large Cap Index, a co-branded benchmark designed to strengthen capital market integration and support future cross-market investment opportunities, such as exchange-traded funds (ETFs). “The launch of this index is an important milestone, boosting the visibility of Malaysian public-listed companies among regional investors and showcasing the diversity of our sectors,” Fad’l added. The index features 30 Malaysian blue-chip companies and 30 Hong Kong Southbound-eligible large-cap firms. Malaysian constituents span key sectors, including consumer products and services (23%), financial services (20%), utilities (13%), and telecommunications and media (13%). The MoU outlines five strategic areas of cooperation, including streamlining dual listing pathways, co-developing market-driven indexes, promoting ETFs, supporting syariah-compliant securities, and exploring carbon market initiatives. Fad’l emphasized Malaysia’s strong domestic institutional investor base and leadership in the Islamic capital market, positioning Bursa Malaysia as a gateway for corporates and syariah-compliant investments to access regional and global capital, particularly within ASEAN. HKEX CEO Bonnie Chan said, “Partnering with Bursa Malaysia strengthens connectivity between our capital markets. Expanding engagement with the region is a key strategic priority as we aim to build a multi-asset product ecosystem and attract global liquidity to Asia amid heightened macroeconomic uncertainties.”

JP Morgan has highlighted Malaysia and China as two of the most resilient Asian economies amid the current global energy crisis. Rajiv Batra, JP Morgan’s head of Asia and co-head of global emerging markets equity strategy, noted that other Asian countries appear more vulnerable. “Malaysia benefits from net energy exports, a well-managed fiscal deficit, and moderate inflation, giving it buffers that support both equity markets and the currency,” he said. China, he added, is similarly well-positioned, with only 5% of its electricity dependent on imported energy. The majority comes from domestic production, supported by a strategic reserve of about 1.7 billion barrels and alternative energy sources such as renewables and coal. “These factors make Malaysia and China the safest bets in Asia compared with their peers,” Batra said. Regarding regional equity markets, Batra said Asia’s earnings growth forecast for 2026 has been revised from 31% to around 26% due to direct impacts on consumer staples, discretionary, utilities, and downstream sectors. He also warned of potential second- and third-order effects on sectors like tech, media, telecoms, and healthcare if the energy crisis persists. Oil prices remain elevated, with US crude settling at US$99.64 per barrel and Brent crude at US$112.57, marking the highest levels since July 2022 amid ongoing geopolitical concerns in the Middle East.

GuocoLand (Malaysia) Bhd said a proposal by its controlling shareholder to privatise the company will be presented to shareholders at an extraordinary general meeting (EGM), with the date to be announced later. In a filing with Bursa Malaysia, the board — excluding interested directors — said it had reviewed the proposal together with advice from the independent adviser, and resolved to table the matter for approval by disinterested shareholders at the upcoming EGM. The privatisation plan was first announced on Feb 3, when controlling shareholder GLL (Malaysia) Pte Ltd (GLLM) proposed to take the company private via a selective capital reduction and capital repayment at RM1.10 per share. Under the proposal, entitled shareholders holding 244.95 million shares, representing 34.97% of the company, would receive a total capital repayment of about RM269.45 million. GuocoLand Malaysia is the property arm of Hong Leong Group, controlled by Tan Sri Quek Leng Chan. Quek, who directly holds a 2.78% stake or 19.51 million shares, is expected to receive approximately RM21.46 million under the exercise. GLLM, a wholly-owned subsidiary of Singapore-listed GuocoLand Ltd, said the privatisation will be funded using GuocoLand Malaysia’s excess cash, with the balance financed through advances or equity injections from GLLM or its parent company. Upon completion, the 244.95 million shares will be cancelled, reducing the company’s total issued shares to 455.51 million. The remaining shares will be fully owned by GLLM, making GuocoLand Malaysia an indirect wholly-owned subsidiary of GuocoLand Ltd. GLLM currently holds a 65.03% stake in the company. The controlling shareholder does not intend to maintain GuocoLand Malaysia’s listing status and plans to apply for delisting from Bursa Malaysia once the exercise is completed. GuocoLand Malaysia shares closed unchanged at RM1.06, giving the company a market capitalisation of about RM742 million.

Analysts view Heineken NV’s decision to relocate large-scale production to established regional breweries in Malaysia and Vietnam as a positive move for Heineken Malaysia Bhd, opening a potential new revenue stream through exports to Singapore and the wider Asia-Pacific region. HLIB Research said the potential contribution from the new revenue would likely be meaningful for Heineken Malaysia, given that export sales currently account for less than 1% of its revenue. Heineken NV announced that its subsidiary, Asia-Pacific Breweries Singapore (APBS), will gradually scale down production at its Tuas brewery, home to the Tiger Beer brand, shifting output to facilities in Malaysia and Vietnam. Hong Leong Investment Bank (HLIB) Research said the additional export revenue could be significant, as Heineken Malaysia currently generates less than 1% of its sales from exports. “We expect Heineken Malaysia to mainly supply on a business-to-business basis, with branding, marketing, and consumer-facing operations handled by APBS in Singapore,” HLIB noted. “The shift should improve plant utilisation and operating leverage, which may expand margins.” HLIB also highlighted Malaysia’s geographic advantage, suggesting it will likely serve as the main supplier to Singapore over Vietnam. A brokerage analyst added that increased export exposure could diversify earnings and enhance the company’s valuation, reducing reliance on domestic regulatory policies. TA Research said the move is expected to provide incremental earnings support over the medium term. Since the Singapore production transition will occur gradually through 2027, the revenue contribution will build over time. Assuming Malaysia fulfills 60% of exports to Singapore, TA Research estimates a revenue boost of RM344.7 million in FY27 and RM360.4 million in FY28, translating into an expected net profit increase of 1.5% in FY27 and 6.2% in FY28. Both HLIB and TA Research have maintained their “buy” ratings, with target prices of RM28.07 and RM25.80 per share, respectively, pending further clarity on export allocation and its financial impact. This development positions Heineken Malaysia to benefit from improved export sales, higher operating efficiency, and a more diversified revenue mix.

Empire Premium Food Bhd, the operator of the Empire Sushi chain, aims to open 56 new outlets across Malaysia over the next three years, using over half of its RM152.5 million IPO proceeds. This will expand the company’s current network of 143 stores. At a press conference following the prospectus launch, executive director and CEO Nicole Lim said the new outlets will be strategically located in high-traffic areas such as shopping malls, airports, and transit hubs. “We are targeting prime locations nationwide where our teams can support operations, rather than focusing on any specific state,” she said. CFO Lim Chung Liang noted that the average cost per outlet accounts for renovation, inflation, and operational setup. Quick dine-in outlets are expected to cost RM900,000 to RM1 million each, while grab-and-go formats will cost RM550,000 to RM600,000 per unit, including inventory and capital expenditure. Empire Premium launched its prospectus ahead of its Main Market listing on Bursa Malaysia, scheduled for April 17, 2026. Of the 363 million shares offered, 293 million are allocated for institutional investors—including 137.5 million shares for bumiputra investors approved by Miti—and 70 million shares for the retail public, with 55 million shares reserved for Malaysians via balloting. A further 15 million shares are earmarked for directors, employees, and contributors to the group’s growth. Upon listing, Empire Premium will have an enlarged share capital of 1.1 billion shares, giving it a market capitalisation of RM770 million at the IPO price of 70 sen per share. The group has a dividend policy targeting at least 30% of profits after tax attributable to shareholders. The IPO is expected to raise RM152.6 million for the company, with an additional RM96.3 million earmarked for co-founders Jordan Tan and Nicole Lim, who received a combined RM64 million in dividends for FY2025-26. Applications for the IPO close at 5 pm on March 31, 2026.

Australia’s Macquarie Asset Management has emerged as the leading bidder to acquire Edotco Group Sdn Bhd, the telecommunications tower arm of Axiata Group Bhd, according to a report by the Wall Street Journal. The report, citing people familiar with the matter, said discussions are ongoing and no deal has been finalised. While recent developments in the Middle East have been taken into consideration, they are not expected to derail a potential transaction. If completed, the deal could value Edotco at between US$3.5 billion (RM13.94 billion) and US$4.0 billion, the report said. An Axiata spokesperson declined to comment on the matter but reiterated that the group has previously informed investors of its intention to explore value creation and potential monetisation options for Edotco. A spokesperson for Macquarie Group also declined to comment. The Edge had earlier reported in its Dec 1–7, 2025 issue that Macquarie was among three shortlisted bidders for Edotco. The other contenders include a consortium led by the Employees Provident Fund (EPF) and a group led by private equity firm CVC Capital Partners plc. Axiata currently holds a 63% stake in Edotco, which operates telecommunications towers across Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, the Philippines and Sri Lanka. Sovereign wealth fund Khazanah Nasional Bhd owns 32% of the company, while the remaining stake is held by Retirement Fund Inc (KWAP).