THIRTEEN Bumiputera companies under Teraju’s Skim Jejak Jaya Bumiputera (SJJB) programme continue to outperform the key benchmark index, FTSE Bursa Malaysia (FBM) KLCI, since their listing.
The companies, which have grown to RM8.9 billion in total market capitalisation since their initial public offerings (IPOs), have made 22 per cent higher returns on average in share price since 2014 compared with FBM KLCI.
Teraju chief executive officer Datuk Husni Salleh said more Bumiputera companies were expected to be listed on the Main Market of Bursa Malaysia, the “Access, Certainty, Efficiency” Market and Leading Entrepreneur Accelerator Platform Market.
He said although there were only 30 Bumiputera companies out of 900 listed companies in Malaysia, Teraju was convinced that the number would increase over time as many Bumiputera companies had shown interest in pursuing IPOs or listings.
“Teraju works with agencies, such as Bursa Malaysia, SME Corp and Securities Commission, as we are the enabler in making Bumiputera companies champions.
“We have a line-up of companies that want to be part of this journey, and Bumiputera companies need to have the proper frameworks and follow the principles to achieve their target,” he said in an interview recently.
He said the 13 companies had grown fundamentally strong in their sectors and as a result, some of them had more than doubled their market capitalisation.
Mid-cap oil and gas company Serba Dinamik Holding Bhd’s initial market capitalisation was RM2 billion in February, but reached RM4 billion within a few months, two times the initial market capitalisation, Husni said.
Serba Dinamik was also an analyst favourite due to its bright long-term outlook. With its target price relatively high among research houses, Affin Bank had chosen Serba Dinamik as its top mid-cap oil and gas pick.
SJJB was established by Teraju to provide corporate advisory solutions to Bumiputera companies that have the potential to pursue IPOs, focusing on capacity building for the companies.
The programme was also successful in helping Bumiputera companies undertake mergers and acquisitions. These included Censof Holdings Bhd’s acquisition of a 51 per cent stake in Singapore’s Asian Business Software Solutions Pte Ltd and its takeover of Dagang NeXchange Bhd.
The programme had also helped Dagang Nexchange in acquiring OGPC Sdn Bhd and the United Kingdom-based Ping Petroleum Ltd.