Highlights

AmInvest Research Reports

Author: AmInvest   |   Latest post: Fri, 14 Aug 2020, 9:49 AM

 

RHB Bank - Stock’s Liquidity Expected to Improve

Author:   |    Publish date:


  • According to media reports, Aabar Investments PJS is planning to sell down its remaining 9.99% stake (400.52mil shares) in RHB Bank at the price of around RM5.64/share with CIMB appointed to undertake the book-building exercise.
  • This follows an earlier selling down of 4.76% (191mil) of its shares via private placement at between RM5.43 and RM5.54 in March 2019.
  • We expect a temporary softening of its share price with this news.
  • It is not surprising that the shareholder, Aabar, is gradually exiting the banking entity.
  • Aabar is considered to be a passive investor, and the full disposal of its remaining 9.99% stake should improve the liquidity of RHB Bank shares. The free float on the stock is expected to be higher from the present 39.3% after the completion of the disposal of the shares. This will remove uncertainties overhanging on the remaining shareholdings of Aabar in RHB Bank.
  • We maintain our BUY call based on improved fundamentals underpinned by better asset quality. Our FV is unchanged at RM6.60/share based on 1.0x FY20 P/BV. Valuation remains undemanding with the stock trading at 0.9x BV/share.

Source: AmInvest Research - 18 Jun 2019

Share this
Labels: RHBBANK, CIMB

Related Stocks

Chart Stock Name Last Change Volume 
RHBBANK 4.94 -0.06 (1.20%) 3,205,800 
CIMB 3.55 -0.05 (1.39%) 9,493,400 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Perform Technical & Fundamental Analysis on Stocks
MQ Affiliate
Earn rewards by referring your friends
 
 

237  841  406  512 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 XOX 0.24-0.015 
 SAPNRG 0.115-0.015 
 BORNOIL 0.07+0.005 
 AT 0.09-0.015 
 PWORTH 0.040.00 
 PHB 0.035-0.005 
 LAMBO 0.0550.00 
 TRIVE 0.020.00 
 PHB-WB 0.02-0.005 
 NEXGRAM 0.0650.00 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
2. MQ Affiliate – A smarter way to earn more rewards MQ Trader Affiliate Program
3. MQ Affiliate – How to become an effective affiliate MQ Trader Affiliate Program
4. MQ Affiliate – Upgrading to Affiliate Partner MQ Trader Affiliate Program
Partners & Brokers