Hong Leong Bank, parent set rights issue prices

PETALING JAYA: Hong Leong Bank Bhd (HLB) and parent company Hong Leong Financial Group Bhd (HLFG) have fixed their rights issue at RM10.40 and RM11.60 a share, respectively.
In a filing with the stock exchange, HLB said the issue price of RM10.40 per rights share represents a discount of about 22.7% to the theoretical ex-rights price of RM13.45, which was calculated based on the five-day volume-weighted average market price Oct 22 of RM14.20 and after adjusting for the final single-tier dividend of 26 sen per share.
HLB is expected to raise RM2.99 billion from the rights issue exercise on the basis of four rights shares for every 25 existing shares held.
HLFG, meanwhile, will raise RM1.1 billion to subscribe to HLB’s issuance of rights shares. HLFG’s rights issue is on the basis of nine rights shares for every 100 existing shares held.
In a separate filing, HLFG noted that the issue price of RM11.60 per rights share represents a discount of about 20.3% to the theoretical ex-rights price of RM14.55.