Photo by Zahid Izzani/The Edge

KUALA LUMPUR (Feb 8): CIMB Group Holdings Bhd has completed the acquisition of KAF Equities Sdn Bhd via CIMB Investment Bank Bhd, and the entity will be rebranded as CIMB Securities Sdn Bhd.

The stockbroking arm will be headed by Ruzi Rani Ajith as the chief executive officer, reporting to Novan Amirudin co-CEO of Group Wholesale Banking, CIMB Group.

Ruzi is leaving her position as the CEO and Malaysia country head of the previous stockbroking joint venture CGS-CIMB Securities to take on the current role.

In a filing with Bursa Malaysia on Thursday, CIMB said CIMB Securities will provide a full suite of equities services and will complement other products within the Group Wholesale Banking franchise from financing, cash management, treasury and markets and investment banking advisory. These offerings, it added, will be provided to institutional and corporate clients with immediate effect.

"We are pleased to integrate stockbroking into our Wholesale Banking offerings in Malaysia as we complete our end-to-end value proposition for our clients. We will be adopting a phased approach in our rollout, starting with wholesale clients and expanding our offerings in the future.

"We will invest in effective technologies that complement our vision for CIMB Securities to be the brokerage of the future, as we solidify our position to be the trusted partner in the Malaysian capital market," said CIMB Group CEO Datuk Abdul Rahman Ahmad.

In April last year, The Edge broke the story, citing sources, that CIMB had inked a deal to acquire 100% of KAF Equities from KAF-Seagroatt & Campbell Sdn Bhd, one of the oldest stockbroking firms in the country.

It was later revealed in CIMB Investment Bank's first quarter of 2023 (1QFY23) financial statement that the cost of the acquisition was RM147.94 million.

Then in late December, CIMB said it had completed the sale of its residual 25.01% stake in CGS-CIMB Securities International Pte Ltd (CSI) and 25% shareholding in CGS-CIMB Holdings Sdn Bhd (CCH) to CGS International Holdings Ltd (CGI), which was formerly known as China Galaxy International Financial Holdings Ltd.

CGI is a subsidiary of China Galaxy Securities Co Ltd (CGS), the fourth largest securities firm in China by revenue in the first half of 2023.

CIMB said it will receive an estimated gross proceeds of RM780 million for the sale of the 25.01% and 25% stakes, bringing total proceeds for the sale of its 100% original stockbroking business since 2018 to about RM2.5 billion.

On Thursday, CIMB updated that the collaboration with CGS in the retail and wealth business remains in place to help a continuing and seamless service for individual clients.

At market close, CIMB's share price rose three sen, or 0.48%, to close at RM6.23 with a market capitalisation of RM66.44 billion.