Other Banking Institutions

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Investment banks
Discount houses
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Investment banks (IBs) help corporations to
raise capital through debt and equity
security issues in the primary market
Act as a financial intermediary
However, it is not a financial intermediary that takes
deposits and lends them out
Involve in underwriting
Assist corporations in the issuance of new securities
Becomes an underwriter for the IPO
IBs also advise on mergers and acquisitions
(M&As) and corporate restructuring
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SUNWAY BERHAD
LISTING OF SUNWAY BERHAD (FORMERLY KNOWN AS ALPHA SUNRISE SDN BHD) ON THE MAIN MARKET OF BURSA
MALAYSIA SECURITIES BERHAD

HIBISCUS PETROLEUM BERHAD
PUBLIC ISSUE OF BETWEEN 200,000,000 AND UP TO 400,000,000 NEW ORDINARY SHARES OF RM0.01 EACH IN
OUR COMPANY (PUBLIC ISSUE SHARES), TOGETHER WITH BETWEEN 200,000,000 AND UP TO 400,000,000 FREE
DETACHABLE WARRANTS (WARRANTS-A) ON THE BASIS OF 1 WARRANT-A FOR EVERY 1 PUBLIC ISSUE SHARE
SUBSCRIBED, AT AN ISSUE PRICE OF RM0.75 PER PUBLIC ISSUE SHARE PAYABLE IN FULL UPON APPLICATION
COMPRISING: BETWEEN 190,000,000 AND UP TO 390,000,000 PUBLIC ISSUE SHARES TOGETHER WITH
BETWEEN 190,000,000 AND UP TO 390,000,000 WARRANTS-A ON THE BASIS OF 1 WARRANT-A FOR EVERY 1
PUBLIC ISSUE SHARE SUBSCRIBED BY WAY OF PLACEMENT TO SELECTED INVESTORS; 10,000,000 PUBLIC ISSUE
SHARES TOGETHER WITH 10,000,000 WARRANTS-A ON THE BASIS OF 1 WARRANT-A FOR EVERY 1 PUBLIC ISSUE
SHARE SUBSCRIBED AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC; IN CONJUNCTION WITH OUR
LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD.

CATCHA MEDIA BERHAD (ACE Market)
INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE ACE MARKET OF BURSA MALAYSIA
SECURITIES BERHAD (BURSA SECURITIES) COMPRISING: (I) PUBLIC ISSUE OF 23,000,000 NEW ORDINARY SHARES
OF RM0.10 EACH (SHARES) ALLOCATED IN THE FOLLOWING MANNER: 20,000,000 SHARES MADE AVAILABLE
FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INVESTORS; AND 3,000,000 SHARES MADE
AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC (II) OFFER FOR SALE OF UP TO 11,000,000 SHARES
MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INVESTORS AT AN ISSUE
PRICE/OFFER PRICE OF RM0.75 PER SHARE, PAYABLE IN FULL UPON APPLICATION.
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What Does Warrant Mean?
A derivative security that gives the holder the
right to purchase securities (usually equity)
from the issuer at a specific price within a
certain time frame. Warrants are often
included in a new debt issue as a "sweetener"
to entice investors.

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Underwriting
The purchase and subsequent resale of a new
security issue. The risk of selling the new issue at a
profitable price is assumed (underwritten) by an
investment banker.
An underwriter is an investment bank that buys an
issue of security from the firm and resells it to the
investor.
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IB and firm agree on type
and price of security
Firm prepares prospectus
with IB help
SC reviews prospectus
Securities are bought by IB
and resold to public
Prospectus is distributed
to brokerage network;
preissue sales are solicited
Firm decides to issue new
securities
SC approval is received;
finalized prospectus is
distributed
Funds to
issuing
firm
Involve in equity capital market and they
provide specialized facilities to solve
problems for private equity and equity-linked
markets
Provide equity structuring services
Their objective is to make sure that any
equity capital market deal will be syndicated,
marketed and distributed as efficiently as
possible

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Services provided by investment banks:
1. Advisory
Include mergers and acquisitions, corporate and debt restructuring,
capital structure optimization, valuations, financial modelling and
strategic and policy advisory
2. Fund-raising
The banks assist their clients to raise funds from equity capital
markets, debt capital markets, Islamic capital markets and also
through loan syndication
Becomes an underwriter
3. Equities trading
Provide brokerage services for both retail and institutional investors.
They provide a full range of equity and equity-linked sales and
trading services, including share margin financing, settlement,
reporting and custody.
Provide clients with ideas and market insights to help them achieve
maximum performance
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Loan syndication
A syndicated bank loan is one in which a group (or
syndicate) of banks provides funds to the borrower.
The need for a group of banks arises because the
amount sought by a borrower may be too large for
any one bank to be exposed to the credit risk of
that borrower. Therefore, the syndicated bank loan
market is used by borrowers who seek to raise a
large amount of funds in the loan market rather
than through the issuance of securities.
Can be used to reduce the risk of underwriting

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Usually earn their income from fees charged
to clients
Normally set as a fixed percentage of the deal
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Investment banking
first time debt and equity issues occur through
initial public offerings (IPOs)
new issues from a firm whose debt or equity is
already traded are called seasoned equity
offerings (SEOs)
a private placement is a securities issue that is
placed with one or a few large institutional
investors
public offerings are offered to the public at large
IBs act only as an agent in best efforts
underwriting

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Investment banks in Malaysia
Affin Investment Bank Berhad
Alliance Investment Bank Berhad
AmInvestment Bank Berhad
CIMB Investment Bank Berhad
ECM Libra Investment Bank Berhad
Hwang-DBS Investment Bank Berhad
KAF Investment Bank Berhad
Kenanga Investment Bank Berhad
Maybank Investment Bank Berhad
MIDF Investment Bank Berhad
MIMB Investment Bank Berhad
OSK Investment Bank Berhad
Public Investment Bank Berhad
RHB Investment Bank Berhad
Southern Investment Bank Berhad
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Discount houses began operations in Malaysia
since 1963.
Generally, the discount houses specialise in short
term money market operations and mobilise
deposits from the financial institutions and
corporations
The funds mobilised are invested in Malaysian
Treasury bills, Malaysian Government Securities
(MGS), banker acceptances (BAs), negotiable
certificates of deposit (NCDs), Cagamas bonds
and Floating Rate Negotiable Certificates of
Deposit (FRNCDs), as well as to provide an active
secondary market for these activities.
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Basically, the operations of a discount house
include the business of receiving and utilizing
deposits and other funds for investment
purposes
As of 31
st
December 2006, all discount
houses have been transformed into or
absorbed by investment banks.
Examples: KAF Discounts Berhad, Abrar
Discounts Berhad, K&K Kenanga Berhad, OSK
Securities Berhad
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