- RHB Cap has recently announced revised relevant dates for its rights issue. The exdate for its rights issue has been revised to 19 November 2015, from 29 September 2015 previously. The entitlement date is revised to 23 November 2015, from 1 October 2015 previously.

- This is in relation to its proposed 517,696,286 rights issue, at RM4.82 per rights share on the basis of one (1) rights share for every five (5) existing RHB Cap shares held by the entitled shareholders of RHB Cap.

- The date of commencement of trading of rights is revised to 24 November 2015 from 2 October 2015. The date of cessation of trading of rights is therefore changed to 1 December 2015 from 9 October 2015.

- The date of acceptance and payment is 8 December 2015. The date of excess share application and payment is also 8 December 2015.

- The date for announcement of final subscription result and basis of allotment of excess rights securities is revised to 11 December 2015 from 22 October 2015. The listing date of the rights securities is set on 21 December 2015 (previously 30 Oct 2015).

- The change in dates is a surprise to us. Recall that on 17 September 2015, RHB Cap had announced that the regulators had prohibited Aabar Investments PJS (Aabar) from exercising its voting rights in respect of the shares held in RHB Cap in excess of 15% and RHB Cap is prohibited from issuing any further shares to Aabar in right of the shares which are in excess of 15%.

- Aabar currently holds 545.8mil shares or a 21.4% stake in RHB Cap. Aabar’s 21.4% stake would have allowed it to subscribe to 110.8mil shares in RHB Cap, but with this order, Aabar is now limited to 15% of the rights issue, or 77.7mil shares. To recap, there had been no indication of commitment to the rights earlier by Aabar to subscribe to its portion of rights issue.

- We maintain HOLD.

Source: AmeSecurities Research - 28 Sep 2015