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INCREASINGLY, private equity (PE) firms have been able to exit their investments via listings on Bursa Malaysia. While it may seem that the PE firms are offloading their investments to other investors in the stock market, such moves are part of a necessary cycle of capital formation for corporations.

Simply put, the PE would have played a crucial part in pumping in capital and expertise at the time when the target company was still growing and hence posed higher investment risk.

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