Friday 29 Mar 2024
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KUALA LUMPUR (April 13): BIMB Holdings Bhd said today that it has set the issue price of its private placement shares at RM3.58 apiece, which will raise RM795.55 million for the banking group, confirming an earlier report by theedgemarkets.com. The placement, it said in a statement, has been oversubscribed.

BIMB said its joint placement agents BIMB Securities Sdn Bhd and Maybank Investment Bank Bhd have today completed the bookbuilding exercise in relation to the placement.

"BIMB will be issuing 222,222,000 new shares, representing approximately 12.0% of the issued share capital of BHB, as at April 12, 2021, to the placees. The placement was oversubscribed with demand from both existing shareholders and new investors.

"The board has fixed the issue price at RM3.58 per placement share, which represents a discount of approximately 9.4% to the volume weighted average price (VWAP) of BIMB shares for the five market days up to and including April 12, 2021 of RM3.9521," it said.

This morning, theedgemarkets.com reported that BIMB was proposing to place out about 220 million new shares, priced between RM3.55 and RM3.50, to raise close to RM800 million in fresh capital, citing sources.

Shares in the financial services company, which fully owns Bank Islam Malaysia Bhd, were suspended from trading today, pending a material announcement by the group in relation to funding exercise.

In a restructuring exercise that BIMB first announced in December 2019, the group had said Bank Islam would take over BIMB’s main market listing, as well as the 59.45% stake held in Syarikat Takaful Malaysia Keluarga Bhd — which will maintain its separate listing status on the local bourse, following the completion of BIMB’s restructuring exercise.

As part of the restructuring exercise, the group announced its intention to undertake a private placement of new shares to raise RM800 million. It also said it would pay a cash consideration to warrant holders to cancel their exercise rights to the warrants.

On March 31, BIMB shareholders voted on the plan at the group's extraordinary general meeting and gave the green light for the exercise to proceed.

Shares in BIMB were last traded at RM3.94, valuing the company at RM7.30 billion.

Edited ByTan Choe Choe
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