Thursday, January 21

Maybank raises RM3.66 bln through equity offering

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KUCHING: Malayan Banking Bhd (Maybank) recently announced the successful completion of a bookbuilding exercise in relation to its private placement, raising approximately RM3.66 billion (US$1.2 billion) at a narrow discount to market price.

According to its press release yesterday, the private placement ranked as the largest in Malaysia’s corporate history and was well received by both domestic and foreign institutional investors.

The issue price was fixed at RM8.88 per placement share and total number of shares to be issued represented approximately 4.98 per cent of the enlarged issued and paid-up share capital of Maybank as at September 30, 2012.

“The private placement is a proactive move to boost Maybank’s equity capital ahead of the implementation of the Basel III capital framework,” it stated.

Based on Maybank group’s financial position as at June 30, 2012, its proforma core equity position before the proposed interim dividend would improve from 7.97 per cent to 9.27 per cent whilst its proforma total capital adequacy ratio would improve from 15.66 per cent to 16.96 per cent.

The funds raised would also support its growth objective particularly in relation to the rapid expansion of its business in Indonesia, the Philippines and other regional markets.

Apart from the continued strength of the Malaysian domestic economy, Maybank was seeing tremendous opportunities in the economic growth across the Asean region.

Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said, “This landmark transaction bears testimony to Maybank’s strong financial performance over the past few years. The board and management will remain committed to growing Maybank responsibly and delivering superior returns to our investors.”

Meanwhile, Maybank president and chief executive officer Datuk Sri Abdul Wahid Omar added, “This exercise is a timely boost of confidence to Maybank that it is on the right track to deliver sustainable growth.

“I would like to record my deepest appreciation to all the investors who participate in the bookbuilding exercise and our shareholders who have been with us through thick and thin, as we continue to execute our growth plans.”