KUALA LUMPUR: RHB Investment Bank Bhd’s wholly-owned unit RHB Asset Management Sdn Bhd aims to raise RM200 million from its latest offering, the RHB-OSK Pre-IPO and Special Situation Fund 2.
RHB Investment managing director and chief executive officer Mike Chan said the fund, structured as a close-ended unit trust fund with a charter life of five years, will act as a feeder fund to the US dollar denominated RHB-OSK Pre-IPO and Special Situation Fund launched in Singapore in April 2014.
“We are targeting a long-term capital appreciation of 15 to 20 per cent internal rate of return (IRR) per annum for this fund and 100 per cent IRR throughout its charter life,” he told reporters at the launch of the fund here yesterday.
He said the fund’s investment strategy is combining growth capital/pre-initial public offering (IPO) and special situations investment with hybrid debt/equity features with emphasis on downside protection, current income and upside opportunity focusing on fundamentally sound business.
He added that the fund would be investing at least 95 per cent of its net asset value in the shares of the company and the remainder of up to five per cent in liquid assets.
Opened for subscription since July 22 until Sept 4, the fund is eligible for qualified investors encompassing high net worth individuals and corporate bodies with a minimum investment of RM50,000.
RHB OSK Asset Management Pte Ltd managing partner, alternative investment, Dr Harrison Wang said the fund is targeting 15 investment projects with a maximum value of US$10 million each within the period of three to five years.
He said the targeted projects are predominantly but not limited to Asean in the sector of oil and gas, healthcare, financial technology and acquisition portfolio.
He added that among the targeted projects are independent companies with credible and proven records and on track for listing.
RHB Asset Management managing director and group asset management regional head Eliza Ong said the fund is among the products planned to be launched this year in line with its ambition to increase its assets under management value to RM50 billion from RM47 billion currently.
She said apart from Malaysia, it would also be launching products in Hong Kong, Singapore and Indonesia.
Meanwhile, on the development of the merger between RHB Bank and CIMB Bank, Chan said the merger should create value for both banks’ employees and stakeholders.
“We are at the very beginning of the 90 days exclusivity period, there are a lot of economic terms coined out between both sides.
Both merger teams are actively looking at the numbers and decide what is good basically for the employees as well as the shareholders,” he said.
Last month, CIMB Bank, RHB Bank and Malaysia Building Society Bhd (MBSB) received the nods from Bank Negara Malaysia to commence discussions aimed at merging both RHB Bank and CIMB Bank, as well as creating an enlarged Islamic banking franchise with MBSB.
Following the announcement, the three parties have entered into a 90-day exclusivity agreement to negotiate and finalise pricing, structure and other relevant terms and conditions for a proposed merger of the three entities and the creation of a mega Islamic bank. — Bernama