KUALA LUMPUR (April 14): BIMB Holdings Bhd, which owns Bank Islam, opened six sen or 1.52% higher at RM4 this morning, after the group said it will be issuing 222 million new shares at RM3.58 apiece to raise RM795.55 million.
However, it then started falling from its opening price. At 9.45am, the counter stood at RM3.90, down four sen or 1.02%. It saw 164,200 shares traded.
The group announced yesterday, confirming a report by theedgemarkets.com, that it will be issuing 222 million new shares, representing approximately 12% of the issued share capital of BIMB as at April 12, 2021, to the placees.
The placement was oversubscribed with demand from both existing shareholders and new investors, it said.
BIMB also said 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 of BIMB shares for the five market days up to and including April 12, 2021 of RM3.9521.
The group announced a restructuring exercise in December 2019, with its intention to undertake a private placement of new shares to raise RM800 million.
Bank Islam will 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.
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