CIMB to raise up to RM3.6b
Outplacement of 400m new shares will be at between RM7.10 and RM7.25 apiece
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MALAYSIA'S second largest lender, CIMB Group Holdings, could raise up to RM3.6 billion (S$1.4 billion) by placing out new shares, including a sizeable option, to boost core capital.
Citing a term sheet with details of the deal, Reuters reported that CIMB would sell 400 million new shares, or a 5 per cent interest, for between RM7.10 and RM7.25 apiece. This represents a discount of 2.7 per cent to CIMB's Friday closing price of RM7.30. The counter was suspended yesterday.
Reuters said that the underwriters of the offering have the option to increase the deal by up to RM723 million to meet additional demand, taking the total deal size to RM3.26 billion. The bank will use the proceeds to fund growth in its subsidiaries, reduce debt, and as working capital.
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