KUALA LUMPUR (April 5): AMMB Holdings Bhd (AmBank) has confirmed that the issue price for its 300 million private placement shares is fixed at RM2.75 apiece.
In a bourse filing, the group said the issue price constitutes a 7.44% discount to its five-day volume-weighted average (VWAP) of its shares up to April 2 of RM2.9711.
The group also confirmed that the private placement has been oversubscribed, having generated interest from a "strong group of diverse investors".
“This demonstrates a confidence of the investing community on AMMB’s resilience to provide a stable earnings growth for all stakeholders,” it said.
The Edge had reported earlier today that issue price for the private placement would be at RM2.75.
Citing sources, it also reported that the shares were offered to institutional funds and high-net-worth-individuals, and had been oversubscribed.
AmBank had proposed the private placement last week to raise an estimated RM810 million. The exercise entails the issuance of 300 million new shares (equivalent to 9.97% of the group's current share capital) to raise additional funds to strengthen its core capital ratios, including Common Equity Tier 1 and Total Capital Ratio.
The share placement proposal came slightly more than one month after AmBank reached an agreement with the Ministry of Finance to pay RM2.83 billion as settlement for transactions the bank was involved in, with regards to the 1MDB scandal.
Shares in AmBank closed 5.37% or 16 sen higher at RM3.14 today, valuing the group at RM9.47 billion. The counter saw 15.48 million shares done.