- We maintain our HOLD rating on CIMB Group Holdings (CIMB), with an unchanged fair value of RM4.70/share for FY16F. Our fair value is based on unchanged ROE of 9.5% for FY16F, leading to an unchanged fair P/BV of 1x.

- CIMB has just announced that the issue price of the new CIMB shares to be issued pursuant to its dividend reinvestment scheme (DRS) for the first interim dividend has been fixed yesterday (Price Fixing Date) at RM4.56/share. The issue price represents a discount of approximately 4.9% to the theoretical ex-dividend price of RM4.79/share.

- The theoretical ex-dividend price was arrived at after taking into consideration the following: (i) 5 market day volume weighted average market price up to and including 7 September 2015, being the last trading day prior to the Price Fixing Date of approximately RM4.82 per CIMB share; and (ii) dividend per share of 3 sen per CIMB share based on the number of issued and paid-up share capital of CIMB of 8,489,786,868 CIMB Shares as at 30 June 2015.

- The entitlement date pursuant to the first interim dividend and the DRS has been fixed for 23 September 2015.

- The ex-date is 21 September 2015.

- Barring any unforeseen circumstances, the new CIMB shares arising from the DRS will be listed on the Main Market of Bursa Securities on 26 October 2015.

- Separately, CIMB Group's foreign shareholding stood at 28.5% as at end-August 2015. This compares to 29.0% as at end-July 2015.

- We maintain HOLD. 

Source: AmeSecurities Research - 9 Sep 2015