RETAIL BANKING | Cesar Tordesillas, Malaysia

Maybank to expand existing businesses

Maybank placed out 412 million new shares at a price of RM8.88 and hence raising a whopping RM3.6bil in the process.

The management of Maybank said that the money raised from the placement would not be used for mergers and acquisition purposes, but to expand its existing businesses, particularly in Singapore.

“This sounds logical to us as Maybank may be required to bring in capital if it is required to locally incorporate its Singapore subsidiary, which currently holds a Qualified Full Banking licence,” said a HwangDBS analyst in an Oct 8 report.

The report said the Monetary Authority of Singapore announced at end July that it would require existing QFBs that were important to the domestic market to locally incorporate their retail operations.

Maybank may need new capital if it is required to locally incorporate its Singapore subsidiary.

Meanwhile, the 412 million Maybank shares placed out represented about 4.98% of the enlarged issued and paid-up share capital of Maybank as at Sept 30.

The issue price of RM8.88 was a discount of about 2.1% to the weighted average market price of Maybank shares for the five market days up to and including Oct 5.

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