KUALA LUMPUR, Aug 19 — Initial public offerings (IPO) are again set to reignite activity in Bursa Malaysia that has been in the doldrums since the run-up to Election 2013, Singapore’s The Straits Times (ST) reported today.

In its Asia Report section, the newspaper also predicted that the markets will remain stable through to Malay nationalist party Umno’s internal elections due in October, despite a possible move for Prime Minister Datuk Seri Najib Razak’s presidency of the party.

“The string of companies in the IPO pipeline could re-ignite investor interest in the Malaysian stock market, which up until May saw investors holding back owing to poll jitters,” reported ST here.

“But since the general election — in which Barisan Nasional retained power, albeit by a narrow margin — the stock market has fared well.”

Prior to Election 2013, Malaysia hosted two of the world’ largest IPOs — palm oil giant Felda Global Ventures Holdings (FGVH) and health-care operator IHH Healthcare.

But activity fell off in the months before the May 5 polls, as investors stayed cautious over the uncertain date of the elections, and worry that a loss by long-ruling coalition Barisan Nasional (BN) – anchored by Umno — might postpone economic reforms.

Foreign funds had pulled RM10.7 billion out of Malaysia in February due to election jitters, and pushed RM29.4 billion into neighbouring Thailand during the same period.

A major IPO expected in the fourth quarter this year is for UMW Holdings’ wholly-owned unit, UMW Oil and Gas Corp, in a deal potentially worth up to RM3 billion, with 2.162 billion shares up for grabs at 50 sen each.

The firm provides services in the upstream sector of oil and gas, providing offshore drilling and oilfield services, including engineering and maintenance services.

The IPO will be the country’s largest this year, after independent power producer Malakoff Corp Bhd decided in May to delay its debut until 2014.

Port Klang terminal operator, Westports Malaysia, is also expected to list in October to raise up to US$500 million (RM1.6 billion), after issuing its draft prospectus last month.

Westports is headed by entrepreneur Tan Sri G. Gnanalingam, and counts Hutchison Port Holdings and Malaysia’s state investor Khazanah Nasional Bhd as shareholders.

Karex Industries, a leading Malaysian condom manufacturer, is also expected to list this year.

Meanwhile, ST has quoted sources close to tycoon Tan Sri Vincent Tan as saying that his prized asset lottery operator Sports Toto will be listed as a business trust on the Singapore Exchange (SGX) by November.

Sports Toto Malaysia Trust is set to raise between S$300 million and S$500 million after it was awarded a conditional green light from the SGX December last year.

This was after Berjaya Sports Toto’s (BToto) plan to list on the SGX was stalled due to the overhang from the May polls.

BToto’s conditional eligibility to list will expire next month, and the company is planning to apply for another extension from SGX.

The string of offerings follow long-haul budget carrier Air Asia X’s modest debut last month, raising US$313 million (RM988 million) at the initial offer price of RM1.25.

ST quoted German-based Deutsche Bank in a recent research report as saying that Bursa Malaysia’s key index has returned 9.2 per cent so far this year driven by the post-polls surge, making it the third best in the region.

Deutsche Bank also expected no material stock market reaction before or after the Umno elections, said ST.