Top 8 Investment Banking Services In Malaysia

February 25, 2023 Investment Banking, Knowledge

Investment banking is a vital financial service offered by banks and other financial institutions in Malaysia. Investment banking services in Malaysia play a crucial role in the growth and development of the country’s economy. From capital raising to financial advisory services, investment banks offer a range of services that can help companies and individuals make strategic financial decisions and grow their wealth. If you are looking to invest, raise capital, or make a strategic financial decision, consider working with an investment bank in Malaysia. here is how investment banking services in Malaysia help companies and individuals grow their wealth, raise capital, and make strategic financial decisions.

Top Investment Banking Services In Malaysia

Capital Raising

Capital raising is one of the most common investment banking services in Malaysia. Investment banks help companies raise capital through the issuance of bonds, stocks, and other securities. This can be done through initial public offerings (IPOs), secondary offerings, private placements, and more. Investment banks also offer assistance in structuring the issuance of securities, underwriting the issuance, and marketing the securities to potential investors.

Investment banking capital raising refers to the process of raising funds for a company or organization through the sale of securities, such as stocks, bonds, or other financial instruments. Investment banks play a crucial role in capital raising, as they help companies to structure and market their securities to investors.

The process of investment banking capital raising typically involves the following steps:

Preparation: The company seeking to raise capital must first prepare the necessary documentation, such as a prospectus or private placement memorandum, which outlines the terms of the securities offering.

Structuring: Investment bankers work with the company to determine the appropriate structure for the securities offering, such as the type of securities to issue, the offering price, and the size of the offering.

Marketing: The investment bank markets the securities to potential investors, through a roadshow, where the investment bank and company management meet with investors to discuss the offering.

Underwriting: Once the securities are sold, the investment bank acts as the underwriter, which means it assumes the risk of selling the securities to investors at the offering price.

Closing: After the underwriting is complete, the offering is closed, and the company receives the funds raised from the sale of the securities.

Investment banking capital raising can be a complex and time-consuming process, but it can provide companies with access to the capital they need to fund growth, make acquisitions, or pay down debt.

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Mergers and Acquisitions (M&A)

A very important part of investment banking is the process of Mergers and Acquisitions. They advise and assist companies in the buying and selling of other companies, helping them make strategic financial decisions. Investment banks can provide a range of services, including identifying potential acquisition targets, conducting due diligence, negotiating the terms of the transaction, and more. It is an important part of Investment banking services in Malaysia.

Investment banks play a critical role in M&A transactions by providing strategic advice, financial analysis, and deal execution services to their clients.

The procedure of Investment banking M&A consists of the following stages:

Strategy: The investment bank works with its client to develop a strategic plan for the merger or acquisition, which may involve identifying potential target companies, evaluating the strategic fit, and assessing the financial implications of the deal.

Valuation: The investment bank will conduct a thorough financial analysis of the target company, including assessing its assets, liabilities, and earnings potential. Based on this analysis, the investment bank will develop a valuation of the target company to determine an appropriate purchase price.

Due Diligence: The investment bank will conduct a thorough review of the target company’s operations, financials, legal and regulatory compliance, and other key areas to identify any potential risks or issues that may impact the deal.

Negotiation: The investment bank will work with its client to negotiate the terms of the merger or acquisition, including the purchase price, deal structure, and other key terms.

Financing: If necessary, the investment bank will help its client secure financing for the deal, which may involve arranging debt or equity financing from investors.

Closing: Once the terms of the deal are finalized, the investment bank will work with its client to close the transaction, which may involve drafting legal documents, obtaining regulatory approvals, and coordinating the transfer of assets and ownership.

M&A has always been very complex and sophisticated. But it also provides a range of strategic and financial benefits to the companies, for example, expanding their product offerings, gaining access to new markets, and improving their financial performance.

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Financial Advisory

Investment banks offer financial advisory services to help companies make strategic financial decisions. This can include help with financial planning, risk management, and debt restructuring. Investment banks can also provide market research, competitor analysis, and industry analysis to help companies make informed decisions.

Investment banking financial advisory refers to the services provided by investment banks to help their clients manage their financial affairs and achieve their financial goals. Investment banks offer a range of financial advisory services to their clients, including strategic planning, financial analysis, and transaction support.

The main categories of investment banking financial advisory services are:

Corporate finance advisory: Investment banks advise their clients on corporate finance issues such as capital structure, capital raising, dividend policy, mergers and acquisitions, and divestitures.

Restructuring advisory: Investment banks provide advice and support to clients who are experiencing financial distress, including debt restructuring, equity restructuring, and bankruptcy proceedings.

Strategic advisory: Investment banks offer strategic advice to clients on issues such as market positioning, business planning, and competitive analysis.

Valuation services: Investment banks provide clients with independent and objective valuations of their businesses, assets, and liabilities, which can be used in a variety of contexts, such as mergers and acquisitions, financial reporting, and tax planning.

Private wealth management: Investment banks offer a range of services to high-net-worth individuals and families, including investment management, financial planning, and estate planning.

Investment banking financial advisory services can be critical to the success of a business or individual in achieving their financial goals. The expertise and guidance of an investment bank can help clients navigate complex financial issues, identify new opportunities, and make informed decisions about their financial future.

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Asset Management

Asset Management is another one of the essential Investment banking services in Malaysia. It offers asset management services to help individuals and companies manage their wealth. This can include investment advice, portfolio management, and wealth management services. Investment banks can help clients achieve their financial goals by investing their assets in a range of financial products, including stocks, bonds, and mutual funds.

Investment banking asset management refers to the management of investment portfolios and assets on behalf of individual and institutional clients. Investment banks provide a range of asset management services, including portfolio management, investment research, and risk management.

The main categories of investment banking asset management services are:

Portfolio management: Investment banks manage investment portfolios on behalf of clients, using a variety of investment strategies, such as equity, fixed income, and alternative investments. Portfolio managers use a range of tools, such as asset allocation, diversification, and risk management techniques, to help clients achieve their investment objectives.

Investment research: Investment banks provide investment research and analysis to help clients make informed investment decisions. Research may cover various topics, such as market trends, macroeconomic analysis, and company-specific analysis.

Risk management: Investment banks offer risk management services to help clients identify, measure, and manage risk in their investment portfolios. Risk management may involve using derivatives, such as options and futures, to hedge against market fluctuations and other risks.

Wealth management: Investment banks offer wealth management services to high-net-worth individuals and families, including investment management, financial planning, and estate planning.

Alternative investments: Investment banks offer alternative assets, such as hedge funds, private equity, and real estate, to clients looking for non-traditional investment opportunities.

Investment banking asset management can be a complex and challenging field, requiring a deep understanding of financial markets, investment strategies, and risk management techniques. The expertise and guidance of an investment bank can help clients navigate the complexities of the investment landscape and make informed investment decisions to achieve their financial goals.

Top Investment Banks in Malaysia

Here is a list of some of the top investment banks, that offer vital Investment Banking services in Malaysia:

1. CIMB Investment Bank, Berhad

CIMB Investment Bank Berhad is a leading investment bank in Malaysia and a subsidiary of CIMB Group Holdings Berhad, one of the largest banking groups in Southeast Asia. The bank offers a wide range of financial services, including corporate finance, equity and debt capital markets, private banking, wealth management, and institutional brokerage.

CIMB Investment Bank operates in several countries across Asia, including Malaysia, Singapore, Thailand, Indonesia, Hong Kong, and South Korea. It has a strong presence in the ASEAN region and has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Investment Bank in Southeast Asia.

The bank’s mission is to provide innovative and comprehensive financial solutions to its clients, and it is committed to sustainable and responsible business practices. CIMB Investment Bank aims to be a leading regional investment bank in Asia, and it continues to expand its offerings and reach to achieve this goal.

2. Hong Leong Investment Bank, Berhad

Hong Leong Investment Bank Berhad is a leading investment bank in Malaysia and a subsidiary of Hong Leong Financial Group Berhad. The bank offers a wide range of financial services to its clients, including investment banking, equity and debt capital markets, institutional equities, research, and asset management.

Hong Leong Investment Bank operates in Malaysia and has a strong presence in the country’s financial markets. It has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Equity Brokerage House in Malaysia.

The bank’s mission is to provide innovative and customized financial solutions to its clients, and it is committed to delivering high-quality services that meet their diverse needs. Hong Leong Investment Bank aims to be a leading investment bank in Malaysia and continues to expand its services and reach to achieve this goal. It is also committed to sustainable and responsible business practices and seeks to make a positive impact on the communities it serves.

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3. Maybank Investment Bank, Berhad

Maybank Investment Bank Berhad is one of the top investment banks in Malaysia and a subsidiary of Malayan Banking Berhad (Maybank), one of the largest banking groups in Southeast Asia. The bank offers a wide range of financial services to its clients, including investment banking, corporate finance, debt capital markets, equity capital markets, and derivatives trading.

Maybank Investment Bank operates in Malaysia and has a presence in several other countries, including Singapore, Hong Kong, Thailand, and Indonesia. It has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Debt House in Malaysia.

The bank’s mission is to provide innovative and comprehensive financial solutions to its clients, and it is committed to delivering high-quality services that meet their diverse needs. Maybank Investment Bank aims to be a leading investment bank in Malaysia and the region, and it continues to expand its offerings and reach to achieve this goal. It is also committed to sustainable and responsible business practices and seeks to make a positive impact on the communities it serves.

4. RHB Investment Bank, Berhad

RHB Investment Bank Berhad is a leading investment bank in Malaysia and a subsidiary of RHB Bank Berhad, one of the largest banking groups in Malaysia. The bank offers a wide range of financial services, including investment banking, corporate finance, debt capital markets, equity capital markets, institutional equities, and research.

RHB Investment Bank operates in Malaysia and has a presence in several other countries, including Singapore, Hong Kong, Thailand, and Indonesia. It has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Equity House in Malaysia.

The bank’s mission is to provide innovative and customized financial solutions to its clients, and it is committed to delivering high-quality services that meet their diverse needs. RHB Investment Bank aims to be a leading investment bank in Malaysia and the region, and it continues to expand its offerings and reach to achieve this goal. It is also committed to sustainable and responsible business practices and seeks to make a positive impact on the communities it serves.

5. AMMB Holdings, Berhad (AmBank Group)

AMMB Holdings Berhad, also known as AmBank Group, is one of the largest financial services groups in Malaysia, providing a wide range of banking, financing, and related financial services. It offers retail banking, business banking, investment banking, treasury, and insurance services to individuals, SMEs, and corporations.

The bank operates through its subsidiary, AmBank (M) Berhad, which provides retail and commercial banking services, and AmInvestment Bank Berhad, which provides investment banking services in Malaysia. AmBank Group also has a presence in other countries such as Singapore, Hong Kong, and the United Kingdom.

The bank’s mission is to provide innovative and personalized financial solutions to its clients, and it is committed to delivering high-quality services that meet their diverse needs. AmBank Group aims to be a leading financial services group in Malaysia and the region, and it continues to expand its offerings and reach to achieve this goal. It is also committed to sustainable and responsible business practices and seeks to make a positive impact on the communities it serves.

6. Public Investment Bank, Berhad

Public Investment Bank Berhad is one of the leading investment banks in Malaysia, offering a range of financial services to its clients. The bank’s services include investment banking, equity and debt capital markets, institutional equities, research, and asset management.

Public Investment Bank operates in Malaysia and has a strong presence in the country’s financial markets. The bank has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Equity Brokerage House in Malaysia.

The bank’s mission is to provide innovative and customized financial solutions to its clients, and it is committed to delivering high-quality services that meet their diverse needs. Public Investment Bank aims to be a leading investment bank in Malaysia and continues to expand its services and reach to achieve this goal. It is also committed to sustainable and responsible business practices and seeks to make a positive impact on the communities it serves.

7. Affin Hwang Investment Bank, Berhad

Affin Hwang Investment Bank Berhad is a leading investment bank in Malaysia and a subsidiary of Affin Holdings Berhad, a financial services group. The bank provides a wide range of financial services, including investment banking, corporate finance, debt capital markets, equity capital markets, institutional equities, and research.

Affin Hwang Investment Bank operates in Malaysia and has a presence in several other countries, including Singapore, Hong Kong, and the United Kingdom. It has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Equity House in Malaysia.

The bank’s mission is to provide its clients with innovative and comprehensive financial solutions, and it is committed to providing high-quality services that meet their diverse needs. Affin Hwang Investment Bank aspires to be the leading investment bank in Malaysia and the region, and it is constantly expanding its offerings and reach to that end. It is also dedicated to sustainable and responsible business practices and strives to make a positive difference in the communities it serves.

8. Macquarie Bank, Berhad

Kenanga Kuala Lumpur

Kenanga Bank Berhad is a commercial bank based in Malaysia that provides a wide range of banking and financial services. The bank’s services include personal and commercial banking, investment banking, asset management, stockbroking, and Islamic banking.

Kenanga Bank operates in Malaysia and has a strong presence in the country’s financial markets. It is one of the largest independent investment banks in Malaysia and has won numerous awards for its services, including Best Investment Bank in Malaysia and Best Stockbroker in Malaysia.

The bank’s mission is to provide its clients with innovative and comprehensive financial solutions, and it is committed to providing high-quality services that meet their diverse needs. Kenanga Bank aspires to be Malaysia’s leading financial services provider and is constantly expanding its services and reach to that end. It is also dedicated to sustainable and responsible business practices and strives to make a positive difference in the communities it serves.

Note that this list is not exhaustive and the ranking may vary based on different criteria such as size, market share, and services offered. It’s always best to research and compare different investment banks before making a decision.

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Frequently Asked Questions (FAQ)

1. What are available investment banking services in Malaysia?

Investment banking services in Malaysia include equity and debt capital market services, mergers and acquisitions advisory, structured finance, project finance, and Islamic finance.

2. Which are the top investment banks in Malaysia?

Some of the top banks that offer investment banking services in Malaysia include Maybank Investment Bank, CIMB Investment Bank, RHB Investment Bank, and Hong Leong Investment Bank.

3. What are some regulations governing investment banking services in Malaysia?

The Securities Commission Malaysia (SC) is the regulatory body that oversees investment banking services in Malaysia. Investment banks must comply with various regulations related to licensing, disclosure, reporting, and conduct of business.

4. What are some notable investment banking transactions in Malaysia?

Some notable investment banking transactions in Malaysia include the listing of AirAsia on Bursa Malaysia in 2004, the acquisition of EON Capital by Hong Leong Bank in 2011, and the initial public offerings of FGV Holdings and Malakoff Corporation in 2012 and 2015, respectively.

5. How can I get started with investment banking services in Malaysia?

To get started with investment banking services in Malaysia, you should explore career opportunities with investment banks or pursue relevant education and training in finance and business. You may also want to consult with a financial advisor to discuss investment strategies and options.

Conclusion

In conclusion, investment banking services in Malaysia are growing and offer a wide range of services to companies and individuals. Investment Banks offer a wide range of investment banking services in Malaysia. Whether you are looking to raise capital, make a strategic financial decision, or manage your wealth, investment banks can provide the expertise and resources you need to succeed. Contact a local investment bank today to learn more about how their services can benefit you.

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