- CIMB Group Holdings (CIMB) announced that the issue price of the new CIMB shares to be issued pursuant to the dividend reinvestment scheme (DRS) for the single-tier second interim dividend in respect of the financial year ended 31 December 2013 totalling RM850 mil had been fixed yesterday at RM6.55/share.

- The RM6.55/share issue price represents a discount of approximately 6% to the theoretical ex-dividend price of RM6.97/share, which was arrived at after taking into consideration the 5 market day volume weighted average market price up to and including 11 March 2014, being the last trading day prior to the Price Fixing Date of approximately RM7.07/share.

- The issue price is also based on the single-tier second interim dividend per share of 10.33 sen per CIMB share.

- Note that the second interim dividend of 10.33 sen based on yesterday’s announcement is different from the earlier announced 11 sen based on CIMB’s 4QFY13 announcement.

- The adjustment appears to be based on the enlarged share capital of CIMB of 8,229,341,531 as at 12 March 2014, compared to the 7,729,345,939 ordinary shares at the time of the 4QFY13 announcement.

- The change in share base is due to recent new issue of 500mil new shares under the share placement.

- This means that the total net dividend payable is unchanged at RM850mil, for this tranche of dividend.

- The ex-date is 24 March 2014.

- The entitlement date is 26 March 2014.

- The payment date is set on 23 April 2014. 

Source: AmeSecurities