KENANGA INVESTMENT BANK BERHAD 18 INTEGRATED ANNUAL REPORT 2025 Kenanga Group’s Investment Banking division delivered a robust performance in 2025, with profit before tax increasing to RM22.4 million from RM6.2 million in the previous year. The growth was anchored by the strong contribution of Group Treasury, benefitting from constructive interest rate dynamics and active management across its trading activities. Beyond Group Treasury, the division’s performance also reflects disciplined execution across its teams, sustained advisory activity and a continued focus on delivering value‑driven solutions for clients. The Corporate Finance and Equity Capital Markets teams successfully executed the listing of PEOPLElogy Berhad, a digital learning and human capital development solutions provider on the ACE Market of Bursa Securities. They also supported several capital market transactions, including joint underwriter, joint placement agent, joint bookrunner and advisory roles across engagements with ICT Zone Asia Berhad, PMCK Berhad, Oxford Innotech Berhad, the MMC Ports Initial Public Offering, and the private placement by MN Holdings, which raised RM89 million to support its working capital requirements. In addition to these capital market transactions, it also acted as the independent adviser for several major corporate exercises. These included the proposed acquisition of Lianson Fleet Group Berhad, proposed regularisation plan undertaken by Vantris Energy Berhad (formerly known as Sapura Energy Berhad), the unconditional voluntary takeover offer for FGV Holdings Berhad, the proposed exemptions pursuant to the rights issue by Parkwood Holdings Berhad, Genting Malaysia Berhad’s conditional voluntary takeover offer, and the privatisation of Apex Healthcare Berhad. In Debt Capital Markets, the team acted as joint lead manager and played a major role in the book building for Federal Land Development Authority (FELDA)’s RM1.0 billion issuance under its existing RM9.9 billion Sukuk Murabahah Programme. For corporate deals, it acted as principal adviser, lead arranger, lead manager and facility agent for transactions such as the RM1.0 billion unrated Sukuk programme for Berjaya Japan Developments Berhad, the RM200.0 million bond programme for Berjaya IPS Equity Sdn Bhd (formerly known as Inter-Pacific Capital Sdn Bhd), the RM150.0 million asset-backed securities bond programme for KLG Capital Berhad, backed by KL Gateway Mall, and KIBB’s RM500.0 million Tier 1 programme, underscoring the division’s ability to structure and execute complex financing solutions. Within Islamic Capital Markets, the Islamic Markets team, supported by the Shariah Committee, continued to act as Shariah Adviser for KIB’s Islamic funds and private mandates. Responding proactively to developments in blockchain and tokenisation, the team also initiated programmes to equip staff with foundational knowledge of real-world asset tokenisation, decentralised finance, and related Shariah considerations, with the aim of offering Shariah Advisory and CPE training courses on these fields in the future. The Corporate Banking loan book remained steady and closed at approximately RM726 million as at end-December 2025. Despite compressed net interest margins due to competitive funding costs, the division remained focused on structuring tailored financial solutions to meet client needs. Our Corporate Banking team continues to work closely with our Corporate & Institutional Coverage team, as well as other business units, to replenish and grow the loan book while maintaining disciplined portfolio management and prudent risk practices. Rakuten Trade Sdn Bhd, the Group’s joint venture with Rakuten Securities Inc., further enhanced digital capabilities and retail investor engagement. Assets under administration reached approximately RM4.3 billion as of December 2025, with client debut activation at 36%. Key initiatives for the year included promotional brokerage rates and the introduction of US trade amalgamation—a new feature that automatically combines buy or sell trades of the same US stock within the same trading day, the first of its kind in Malaysia—improving execution efficiency, trading convenience and cost competitiveness for retail investors. Looking ahead to 2026, the division will continue strengthening its core franchise with a greater focus on retail engagement through the newly established Equity Product Origination (“EPro”) department. EPro will serve as its next engine of innovation, expanding its capabilities beyond traditional equities into a broader suite of accessible and innovative derivative product solutions for the retail market. GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Investment Banking
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