Investment & Market Trends

Sunway Bhd announced on Thursday that one of its subsidiaries plans to raise up to RM10 billion through a sukuk wakalah programme to support working capital and refinance existing borrowings. Sunway Treasury Sdn Bhd, a wholly owned unit of Sunway City Sdn Bhd, which is in turn fully owned by Sunway, has submitted the necessary documents to the Securities Commission Malaysia for the sukuk programme, according to a Bursa filing. The sukuk programme will have a perpetual tenure, while each issuance will carry a tenure of over one year, with specific terms determined before issuance. The first tranche will be backed by a corporate guarantee from Sunway. Proceeds from the sukuk are intended for capital expenditure, investments, general corporate purposes, working capital, refinancing of both Shariah-compliant and conventional borrowings, programme-related fees, and inter-company advances within the Sunway Group. OCBC Al-Amin Bank Bhd has been appointed as principal adviser, lead arranger, lead manager, sustainability structuring adviser, and Shariah adviser for the programme. Last month, another Sunway subsidiary, Sunway Cochrane Sdn Bhd, proposed a separate RM2 billion sukuk wakalah programme to support working capital and expansion plans. As of September 2025, Sunway reported cash and bank balances of RM6.52 billion, with short-term debt of RM6.34 billion and long-term borrowings of RM6.08 billion. Shares of Sunway closed unchanged at RM5.58 on Thursday, giving the group a market value of RM38 billion.

Hang Seng Bank shareholders have approved HSBC’s plan to take the bank private in a move aimed at strengthening the Asia-focused lender’s footprint in Hong Kong. In a vote held Thursday, about 86% of shareholders backed HSBC’s proposal to acquire the 36.5% of Hang Seng shares it does not already own, in a deal valued at roughly US$13.6 billion. The plan now awaits approval from Hong Kong’s High Court, which will hold a hearing on January 23 to decide if the take-private transaction can proceed. If cleared, Hang Seng is expected to be delisted from the Hong Kong Stock Exchange on January 27. HSBC CEO Georges Elhedery said the strong shareholder support reflects confidence in Hang Seng’s business and the growth opportunities that full ownership under HSBC could unlock. The move aligns with HSBC’s strategy of expanding key operations while continuing selective divestments. Founded in 1933, Hang Seng Bank is one of Hong Kong’s largest banks, serving around four million customers across more than 250 branches and digital platforms. The bank has faced challenges in recent years due to its exposure to the Hong Kong and mainland Chinese property markets, and the acquisition will make it a wholly owned subsidiary of HSBC Asia Pacific.

China’s Anta Sports Products has made an offer to acquire a 29% stake in struggling German sportswear brand Puma from France’s Pinault family, according to sources familiar with the discussions. The offer was made several weeks ago, and Anta has already secured financing for the potential acquisition, two of the sources said. However, negotiations have since stalled, one source added. All sources spoke on condition of anonymity as the talks are private. The Pinault family’s investment vehicle, Artemis, is said to be seeking a price of more than €40 per share for its Puma stake, a separate source told Reuters. Artemis is led by François-Henri Pinault, chairman of luxury group Kering. The Pinault family acquired the stake in 2018, when Kering divested Puma as part of its strategy to become a pure luxury-focused group. Both Artemis and Puma declined to comment, while Anta did not immediately respond to a request for comment. Puma’s market capitalisation stood at €3.3 billion (US$3.85 billion or RM15.6 billion) at Wednesday’s close, roughly half its value a year earlier, as the company grapples with declining sales and weak consumer demand. The sportswear group appointed Arthur Hoeld as chief executive officer in October, unveiling a turnaround plan after recent sneaker launches, including the Speedcat, failed to gain traction. Sales have also suffered as consumers shifted towards competitors such as Adidas, On and Hoka. Hong Kong-listed Anta, known for acquiring and revitalising Western sports and lifestyle brands, has previously explored a bid for Puma. In 2019, Anta led a consortium that acquired Amer Sports, the owner of brands including Wilson and Salomon. A senior source close to Artemis said in September that the Pinault family viewed its Puma stake as non-strategic, but was unwilling to sell at the company’s then-prevailing valuation. Puma shares have since rebounded by about 15%. Artemis, which controls Kering, auction house Christie’s and talent agency CAA, has faced investor scrutiny over rising debt levels built up as the Pinault family diversified beyond luxury amid a slowdown in global luxury demand.

Chinese regulators are examining whether Meta Platforms Inc.’s US$2 billion acquisition of AI start-up Manus violates national security or technology export rules. The early-stage review could potentially delay or complicate the deal if officials find any wrongdoing. Although Manus is now headquartered in Singapore, Chinese authorities are focusing on AI technology developed by the company when it was still based in China. The start-up’s agentic AI system can perform tasks such as booking flights, screening resumes, creating itineraries, and analyzing stocks, but it is unclear whether Beijing considers this technology critical to national security. The review, first reported by the Financial Times, remains preliminary, and regulators may ultimately choose not to intervene. However, similar reviews in the past have led to formal investigations, penalties, or conditions being imposed on deal approvals. China has previously scrutinized other high-profile transactions, such as ByteDance Ltd’s sale of TikTok US, which has yet to receive full approval from authorities. Meta’s acquisition marks a rare US purchase of an Asian tech company and represents CEO Mark Zuckerberg’s latest multi-billion-dollar bet on AI. Manus’ parent company, Butterfly Effect Pte, was founded in China before relocating to Singapore over the past year. The start-up has mainly focused on international markets, and its products have never been offered in China. The move comes amid Beijing’s push to strengthen domestic technology capabilities and reduce reliance on US software and semiconductors. The acquisition has drawn scrutiny in the US as well; in 2025, venture firm Benchmark faced criticism from lawmakers and investors for backing AI companies with links to China.

Shares of Knowledge Atlas Technology JSC Ltd, better known as Zhipu, gained in their Hong Kong debut following a US$558 million (RM2.27 billion) initial public offering (IPO), making it the first major Chinese generative artificial intelligence (AI) start-up to go public. The stock closed at HK$131.50 (RM68.57) on Thursday, up 13.2%, after opening weaker. Zhipu offered 37.4 million shares at HK$116.20 apiece last week, with retail allocations oversubscribed by more than 1,159 times. Zhipu is the first of China’s so-called “AI tigers” — start-ups developing large language models (LLMs) to rival OpenAI and Anthropic — to list publicly. However, its initial gain is modest compared with the strong debut of Chinese hardware firms, highlighting the tougher market environment for software developers. Analysts note that hardware companies, such as chipmakers, are seen as more central to Beijing’s push for technological self-reliance, while AI software faces fierce competition, price pressures, and limited access to advanced chips due to US export controls. “Investor preference at this stage is still skewed towards tangible infrastructure,” said Gary Tan, portfolio manager at Allspring Global Investments. “Hardware plays offer clearer visibility on government support and a more quantifiable total addressable market.” Zhipu co-founder and chairman Liu Debing acknowledged the challenges of a competitive domestic market, but highlighted the company’s international ambitions. “As we expand globally, users will recognise the value of our models,” he said. The IPO proceeds will be largely allocated to research and development, with 70% earmarked for general-purpose AI model development. The Beijing-based company, founded in 2019 by Tsinghua University researchers, reported revenue of 312.4 million yuan (RM181.42 million) in 2024. Its backers include Alibaba, Tencent, and local government funds, which have helped Zhipu secure contracts with state-owned enterprises seeking customised AI infrastructure. Despite the modest debut, analysts remain positive. Douglas Kim of Smartkarma assigned Zhipu a valuation of HK$223 per share, about 30% below its peer average. Sanford C Bernstein analysts noted that China’s AI sector is only months behind global leaders, predicting continued growth through 2026. The IPO comes amid a broader surge in Chinese tech listings, particularly in semiconductors and AI-related hardware. Recent debuts by Shanghai Iluvatar CoreX, Shanghai Biren Technology, Moore Threads, and MetaX Integrated Circuits have recorded strong first-day gains, underscoring investor appetite for tangible tech assets over software ventures. Zhipu’s current market capitalisation of US$6.6 billion based on the issue price remains lower than many of its chipmaking peers, reflecting the market’s current preference for hardware-focused investments over generative AI software companies in China.

Pioneer Heat Holdings Bhd is planning to list on the ACE Market of Bursa Malaysia as part of its growth and expansion strategy. The group is mainly engaged in providing mechanical engineering services, as well as undertaking civil engineering works for the construction of industrial and supporting facilities across various sectors. In its prospectus exposure, Pioneer Heat said its initial public offering (IPO) will involve the issuance of 86.7 million new ordinary shares. The proceeds raised from the IPO will be channelled towards strengthening the group’s operational capabilities and expanding its footprint. A significant portion of the funds will be used to establish a new headquarters in Sendayan, Negeri Sembilan, alongside the setup of a new office in Sarawak. The company also plans to allocate part of the proceeds for the purchase of additional machinery and equipment to support its project execution capacity. According to the prospectus, the new Sendayan headquarters will feature a total built-up area of 42,790 square feet, comprising a three-storey office building, a one-storey workshop and a one-storey warehouse. The facility is expected to enhance operational efficiency and provide a centralised base for the group’s administrative and engineering activities. Malacca Securities Sdn Bhd has been appointed as the sponsor for Pioneer Heat’s proposed ACE Market listing.

ES Sunlogy Bhd’s wholly owned subsidiary, Savelite Engineering Sdn Bhd, has secured a RM15.22 million contract for a project located in Johor, the company announced in a Bursa Malaysia filing. The contract involves the supply, delivery, installation, testing, commissioning, and maintenance of electrical services as a sub-contractor at Lot 156682 along the Johor Bahru–Pasir Gudang Highway, near Plentong, Johor. The project has been awarded by Parkland Southern Sdn Bhd, the main contractor for the development. ES Sunlogy noted that the sub-contract work is based on a firm price arrangement, which covers all associated costs, including transport, lifting, hoisting, packing, freight, insurance, payroll, taxes, import duties, and any other applicable charges, such as fees, royalties, and exchange rate adjustments. No price adjustments will be made for any future fluctuations. Savelite Engineering also confirmed that it will bear all increases in import duties, tariffs, and taxes that may arise during the contract period, and any such increases will not be recoverable from the main contractor or employer. The award of this contract strengthens ES Sunlogy’s track record in the electrical and engineering services sector, particularly in Johor, and reflects the group’s ongoing capabilities in managing mid-sized infrastructure projects with comprehensive electrical services. This contract is expected to contribute positively to the group’s revenue and earnings once execution is underway, further supporting ES Sunlogy’s strategic growth objectives in the region.

Theta Edge Bhd’s largest shareholder, Lembaga Tabung Haji, has sold its entire 27.28% stake in the ICT solutions company, according to Bursa Malaysia filings on Tuesday (Jan 6). The sale confirms a report by The Edge on Jan 2, which noted that an off-market transaction of similar size in the company aligned with Tabung Haji’s shareholding. The exit marks the pilgrimage fund’s complete divestment from Theta Edge. The buyer of the stake, Stealth Solutions Sdn Bhd, has now become the company’s largest shareholder. Stealth Solutions is 75%-owned by Datuk Amrul Hisyam Alias and 25% by Norul Azwani Mohd Hanafi, according to records with the Companies Commission of Malaysia. The company operates in the telecommunications tower sector, with Amrul Hisyam serving as its group executive chairman. The 27.28% stake sold comprised 32.18 million shares and was transacted on Jan 2 via an off-market sale. While the transaction price was not disclosed in the Bursa filing, Bloomberg off-market data indicates that the shares were sold in a single block at 90 sen per share, representing a 23.3% premium to Theta Edge’s closing price of 73 sen on the same day. The total value of the transaction was approximately RM28.96 million. Tabung Haji has been a substantial shareholder of Theta Edge, formerly Lityan Holdings Bhd, since 2000. Its stake peaked at 68.7% in 2015 and remained there until March 2021, when it sold 32.5 million shares, equivalent to a 30.3% stake at that time. Following the sale to Stealth Solutions, Theta Edge’s other major shareholder is Tan Sri Vincent Tan’s Berjaya Group, which holds 15.38% through REDtone Digital Bhd. Two other substantial shareholders, Threadstone Capital Sdn Bhd and Hilary Fernandez, had previously exited their holdings in May and August 2025, respectively. In a separate development, Theta Edge also announced the resignation of Nik Johaan Nik Hashim and Datuk Dyg Sadiah Abg Bohan as non-independent and non-executive directors on Tuesday. On the open market, Theta Edge shares ended 0.5 sen or 0.68% higher at 74.5 sen, giving the company a market capitalisation of RM87.89 million. The off-market sale not only represents a significant exit for Tabung Haji after more than two decades of investment but also highlights Stealth Solutions’ strategy to expand its presence in the ICT and technology solutions sector through strategic share acquisitions.

IGB Bhd has proposed a bonus issue of one new share for every two existing shares held, the property group announced in a Bursa Malaysia filing on Tuesday. The proposed bonus issue would involve the issuance of up to 679.07 million new shares, based on IGB’s current share base of 1.358 billion shares. The entitlement date for the bonus shares will be announced later, once the company has obtained all necessary approvals. The group noted that following the bonus issue, the share price will be adjusted accordingly. For illustration, the theoretical ex-bonus price would be RM2.0306, based on the counter’s five-day volume-weighted average market price of RM3.0459 up to Jan 5, 2026. IGB said the proposed bonus issue is intended not only to reward shareholders but also to enhance trading liquidity and encourage greater participation from both existing shareholders and new investors. The bonus issue is subject to approval by shareholders at an extraordinary general meeting, as well as the consent of Bursa Securities and other relevant authorities. The company expects to complete the exercise in the first quarter of 2026. On the trading front, shares in IGB ended two sen or 0.66% higher at RM3.05, giving the group a market capitalisation of RM4.14 billion. The proposed one-for-two bonus issue marks another step in IGB’s strategy to strengthen shareholder value while supporting active trading of its shares, reflecting the company’s confidence in its long-term growth prospects.

Construction company Ingenieur Gudang Bhd has announced plans to dispose of a 1.9-acre land parcel in Nilai, Negeri Sembilan, which includes a factory and office building, for RM22 million in cash. According to a Bursa Malaysia filing on Monday, the buyer is Baba Products (M) Sdn Bhd, a manufacturer of curry powder and powdered food products. The company is 80%-owned by Pagalavan C Rangasami and 20% by Rajasulochana Pagalavan. Ingenieur Gudang said the property is currently vacant and unoccupied and had a fair value of RM16 million as of end-November 2024. The group expects to record a net gain of RM5.8 million from the disposal. No formal valuation was conducted for the transaction. Proceeds from the sale are intended to support the group’s general working capital needs and fund potential opportunities that align with its long-term strategic objectives, the filing stated. The company expects the transaction to be completed by the first quarter of 2026. On Monday, shares in Ingenieur Gudang closed unchanged at 2.5 sen, giving the company a market capitalisation of RM31.6 million.