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Maybank raises RM3.66B through accelerated equity offering

08 October 2012

4 min read

  • Largest equity private placement in Malaysian corporate history
  • Base deal size of 300 million new shares upsized to a total of 412 million new shares on the back of strong demand
  • Achieves a narrow discount of 2.1% to the 5-Day VWAP up to 5 October 2012 of RM9.07 and 1.2% discount to last Friday's closing price of RM8.99.
  • Proactive move to strengthen Maybank's capital position ahead of Basel III framework, supports growth objective.

Maybank today 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 the market price. The private placement ranks 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. The total number of shares to be issued represents approximately 4.98% of the enlarged issued and paid-up share capital of Maybank as at 30 September 2012.

The private placement is a proactive move to boost Maybank's equity capital ahead of the implementation of the Basel III capital framework. Based on Maybank Group's financial position as at 30 June 2012, its proforma core equity position before the proposed interim dividend will improve from 7.97% to 9.27% whilst its proforma total capital adequacy ratio will improve from 15.66% to 16.96%.

The funds raised will also support its growth objectives particularly in relation to the rapid expansion of its business in Indonesia, Philippines and other regional markets. Apart from the continued strength of the Malaysian domestic economy, Maybank is seeing tremendous opportunities in the economic growth across the Asean region.

Maybank Chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said today, “This landmark transaction bears testimony to Maybank’s strong financial performance over the past few years. The Board and Management remain committed to growing Maybank responsibly and delivering superior returns to our investors, who have shown tremendous support as demonstrated by the outcome of the private placement.”

Maybank President and CEO, Dato’ Sri Abdul Wahid Omar meanwhile said, "This exercise is a timely boost of confidence to Maybank that it is on the right track to delivering sustainable growth. I would like to record my deepest appreciation, on behalf of Maybank, to all the investors who participated in the bookbuilding exercise, and our shareholders who have been with us through thick and thin, as we continue to execute our growth plans.”

“We are delighted by investors' response to the private placement and their show of support to Maybank," he added.

The private placement exercise is expected to be completed no later than mid October 2012 with the listing of new shares in Maybank issued pursuant to the exercise on the Main Market of Bursa Securities.