KUALA LUMPUR, Dec 15 — Maybank IB Research is maintaining a “buy” call on RHB Bank Bhd with a higher target price of RM6.70 following yesterday’s news of Aabar Investments PJS’s plan to sell its remaining 4.23 per cent stake in RHB Bank Bhd.
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At 10.46 am, RHB Bank shares stood at RM5.66 with 4.08 million shares traded, down from RM5.85 at the close yesterday.
“(The disposal via a secondary placement) is positive, in that it removes the final overhang on the stock. The disposal was concluded at RM5.50 per share, representing a six per cent discount to RHB’s closing share price of RM5.85,” Maybank IB said in a note today.
Maybank IB’s previous price target for RHB Bank was RM6.20.
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Aabar emerged as the bank’s substantial shareholder in June 2016 when it was allotted 711.83 million RHB Bank shares worth 17.75 per cent equity interest pursuant to the distribution and capital repayment of RHB Capital Bhd.
According to a filing with Bursa Malaysia, Aabar ceased to be RHB Bank substantial shareholder on June 24, 2019, when it disposed of 231 million shares or a 5.76 per cent stake in the bank,
Maybank IB said including this final placement exercise which would have raised about RM932 million, Aabar’s total proceeds from all four placements were estimated to be about RM3.8 billion, excluding the dividends that Aabar would have received over the years from RHB Bank. – BERNAMA