Equity Analysis /
Malaysia

MY : AMMB Holdings - Private placement to beef up capital ratios

    Winson Ng
    Winson Ng

    Financial Services Analyst

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    CGS-CIMB
    1 April 2021
    Published byCGS-CIMB

    AMMB Holdings’s proposed private placement of 300m new shares to increase its capital ratios came as a negative surprise to us. We estimate that the private placement would dilute our projected EPS for AMMB by 4% for FY22F and 8.3% for FY23F. Reiterate Reduce due to the: 1) provision of RM2.83bn for the 1MDB settlement in 4QFY3/21, and 2) EPS dilution from the private placement.