KUALA LUMPUR (July 17): AEON Credit Service (M) Bhd's share price hit its highest close since May following its equal partnership in a joint venture with Tokyo-listed AEON Financial Service Co Ltd for digital Islamic banking in Malaysia.

On Monday (July 17), the counter closed 36 sen or 3.17% higher at RM11.70, valuing the company at RM2.99 billion, from its last closing price of RM11.34 on Friday. On May 16, its share price stood at RM11.72.

With 613,500 shares traded, it surpassed its 200-day average volume and was the third top gainer on Bursa Malaysia. It also exceeded last Friday’s volume of 485,600 shares.

The counter reached an intra-day high of RM12.08 and an intra-day low of RM11.54.

However, its share price fell 7% year to date, and decreased by 11.46% over the last one year, according to Bloomberg data.

According to AEON Credit’s bourse filing on July 14, it had entered into a shareholders’ agreement with AEON Financial Service to undertake the digital Islamic banking business through ACS Digital Bhd (ACSD), which is preparing to be licensed as a digital Islamic bank.

The JV will see RM175 million each from AEON Credit and AEON Financial Service.

Subsequent to ACSD commencing its business, AEON Credit and AEON Financial Service may raise an additional share capital of up to RM200 million, which raised a total share capital of up to RM550 million.

ACSD is expected to commence its digital Islamic banking business by April 8, 2024.

Despite the 50%-50% shareholding structure, AEON Financial Service’s effective equity interest in ACSD will be 80.75%, considering the Japanese company has a 61.50% interest in AEON Credit.

Read more:
AEON Credit signs deal with AFS to undertake digital Islamic banking business