Khazanah sells CIMB shares at RM6.31 each

Companies like CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd (HLFG) and AmBank Group Bhd may have to beef up their capital structures by 2019.

PETALING JAYA: Sovereign wealth fund Khazanah Nasional Bhd, which put a block of shares in CIMB Group Holdings Bhd for sale, has sold the shares at RM6.31 per share, the lower end of the RM6.31-to-RM6.42 range of the offer.

Earlier reports said the block of shares represented 90.5 million shares or 1% of the share capital of the banking and financial services group. Khazanah gained RM571mil from the sale, which indicated a 1.7% discount to the shares.

CIMB’s closing price was RM6.31. RHB Research has maintained a “buy” call on the stock with a target price of RM7.10, while Public Investment Bank has a “neutral” call and a 12-month target price of RM6.40.

IFR, a publication owned by Thomson Reuters Corp covering the capital markets, said there was an undisclosed upsize option depending on the response to the offer.

It said the joint bookrunners for the sale of the block were CIMB and JP Morgan. Khazanah, which owns 29.7% of CIMB, has a 60-day lock-up period.