PETALING JAYA: Nasdaq Inc wants more Malaysian companies to list on its stock exchange as these companies could potentially do better in its broad, deep market, said vice chairman Bob McCooey.
At US$28.36 billion (RM134.37 billion), the New York City-based stock exchange is ranked second by market capitalisation of shares traded in the world, behind only the New York Stock Exchange.
McCooey, who also heads the Nasdaq business in the Asia-Pacific, said it is home to seven of the largest companies in the US capital markets, and has a track record of over 51 years of supporting the “most amazing companies”on the public markets.
“The largest market in this region is the Hong Kong Stock Exchange. The capitalisation of all of the companies on their market is US$4.5 trillion. The capitalisation of all the companies listed in the US markets is US$60 trillion. So that’s over 12 times the capitalisation.
“The US market is the largest, most liquid, the deepest capital market in the world with the largest set of investors, especially for companies in emerging technology, new technologies, fintech, and healthcare,“ McCooey told SunBiz in an interview recently.
Although most companies coming to Nasdaq are tech or tech-enabled companies, he said it does not exclude any sector. For example, Nasdaq is also home to Starbucks Corp and JetBlue Airways Corp.
“We’re one of the largest REIT (real estate investment trust) markets in the world. There are also healthcare companies, and some consumer brands that want to grow to be global brands over time. We could support them very well in their area. So we never exclude any type of company,“ he stressed.
McCooey said the goal is to talk to companies that choose to list outside of their home market.
“If they list outside their local market, Nasdaq is the right place. We had lots of good meetings and interest from corporates and financial sponsors to list their companies in the US,“ he revealed.
The first company from Malaysia to list on Nasdaq is Starbox Group Holdings Ltd. Starbox builds cash rebates, digital advertising, and payment solutions. It started trading on the exchange last month.
Nasdaq had a record 752 initial public offerings (IPO) last year. However, so far this year, the tally is only at 136 IPO with “very few” from China amid a strained relationship between Washington and Beijing.
In addition, previously 95% of the companies that list go public with a volatility index (VIX) of 20 or below, but now the VIX is at 30. Hence, McCooey said the biggest challenge right now is to find the right volatility level of the markets.
“We need that volatility to come down and the markets to be more receptive. Then we need some good IPO to happen, to not only price but to also trade well, to give confidence to other companies to come to the market,“ he added.
It has been a year in which the stock market has been challenged to find its footing. But Nasdaq continues to be hopeful that the opportunity for the market to begin to move higher is right around the corner.
“As the market is continuing to move higher, that gives us the opportunity for much more IPO activity which is good for investors and our business,“ McCooey said.
Malaysian companies that have indicated interest to list on Nasdaq include Carsome, Capital A Bhd, ARB IoT Group Ltd, Evoair Holdings, Graphjet Technology Sdn Bhd and Agape.
Source: The Sun Daily
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