BIMB to place out 220 million new shares, raising close to RM800m fresh capital — source

KUALA LUMPUR (April 13): BIMB Holdings Bhd, which owns Bank Islam Malaysia Bhd, is proposing a share placement of about 220 million new shares to raise close to RM800 million fresh capital, according to a source familiar with the fundraising exercise.

The new shares are said to be priced in the range of RM3.55 to RM3.60, the source said. The share placement is believed to be part of the financial group’s restructuring exercise under which ultimately Bank Islam will be taking over the listing status of BIMB Holdings.

BIMB Holdings would be the second financial group — after AMMB Holdings Bhd which owns AmBank (M) Bhd — that has opted for share placement to raise capital.

The board of BIMB Holdings has suspended the trading of the company’s shares today, according to a filing with Bursa Malaysia, pending a “material announcement in relation to a fundraising exercise to be released by the company”.

Lembaga Tabung Haji is the controlling shareholder of BIMB Holdings, owning a 59.45% stake in the group.

Besides Bank Islam, BIMB Holdings also owns a 59.45% stake in Syarikat Takaful Malaysia Keluarga Bhd.

More to come