Anyone heard about the merging between CIMB and Maybank ? Heard the rumour from my friend as Maybank stuff.

I need to pull out all my cash at maybank and dump it to public bank.

Based on what I've read, financial stocks are not a good buy now..... maybe a few months later.....

i mean my cash in my saving and current account 90% got to leave maybank vault and move to PBB vault.

Despite several analysts commenting that the discount Maybank is offering is steep, some industry observers say it might be better for shareholders to exit their investment in Maybank before the rights issue and enter again after the exercise has been completed. Some fund managers that are holding small blocks of shares in Maybank are said to be considering exiting the banking group and not taking up the rights shares as they are of the view that the counter will be dragged further down. This probably explains why Maybank and TMI dipped to their respective 52-week lows of RM4.82 and RM2.63 last Thursday. Minority shareholders say earnings enhancement is unlikely to be visible for Maybank over the next 2 years, given the bleak global economic conditions that will weaken the banking group's international operations.

I don't understand about the right issue. can anybody kindly explain this? and when is the right issue?

T_T... Another question.. if I want to buy Maybank at the right issue (2.74), I have to ask my broker to do it for me right?

T_T... Another question.. if I want to buy Maybank at the right issue (2.74), I have to ask my broker to do it for me right?

In theory, shareholders holding 20 shares would be entitled to 9 rights shares, which they could renounce on the market for RM1.43 each (RM4.17 minus RM2.74) or a total of RM12.87. The RM12.87 or 64.35 sen per share (divided by 20 shares) will help mitigate the dilution. However, given the soft market conditions, will shareholders be able to renounce their rights at RM1.43?

Smart investors would do well to avoid companies that are calling for more capital from shareholders as it would be better to buy the rights entitlement than the mother share, which could be cheaper in a bear market.

Anybody free to explain this?

From the Edge about Maybank rights issue:
My questions are:

1) If I were holding some Maybank shares (before ex) and I don't want the rights, how to renounce those rights on the market at RM1.43 (or any higher value to prevent dilution) once the rights are issued?

2) How to buy the rights entitlement rather than the mother shares?

3) Most recommend buying Maybank shares after the ex..... anybody disagree? 

Thx.

1. Sometime there is a window to dispose the right for the right issue in open market, you can try there if there is one.
2. Buy right for the right issue from open market (cannot apply for excess).
3. No commend. But DBS up after ex-date for right.

Thx for the explanation. Another noob question - How to buy rights from the open market? Through our online stock trading portal e.g. Maybank2u?

Thx for the explanation. Another noob question - How to buy rights from the open market? Through our online stock trading portal e.g. Maybank2u?

If they open a window for rights to be trade, it will be something like a 'super short term warrant'. You can just buy the like warrant from KLSE (through any investment bank/ sec.). But not every time they have such window.

It will be traded afterwards in the market which you can buy and sell just like ordinary share. Generally the window which enable the right to be traded is around 1 week. After 1 week or so, it will be delisted for the proceeding of right issue allotment/subscription.

Possible name or counter name given will be Maybank-OR.

Closing price prior before ex-right let say 4.50

Opening price after ex = (4.50 x 20 + 2.74 x 9)/29

Bros, any idea why divide by 29? Thanks in advanced.

Another noob question sorry :-)

if we buy the rights when it is listed, how do we get the form to subscribe to the rights issue?

Why should you buy the rights when it is being listed? By that time, Maybank mother share would have gone ex-rights. You may as well buy the mother share instead.