Stock Name : MAYBANK
Date Announced : 19/03/2009
Title / Description:
RENOUNCEABLE RIGHTS ISSUE OF UP TO 2,212 MILLION NEW ORDINARY SHARES OF RM1.00 EACH IN MALAYAN BANKING BERHAD ("MAYBANK") ("RIGHTS SHARES") AT AN ISSUE PRICE OF RM2.74 PER RIGHTS SHARE, PAYABLE IN FULL UPON ACCEPTANCE, ON THE BASIS OF NINE (9) RIGHTS SHARES FOR EVERY TWENTY (20) EXISTING ORDINARY SHARES OF RM1.00 EACH HELD IN MAYBANK AT 5.00PM ON 2 APRIL 2009

Despatch Date : 07/04/2009
Date for commencement of trading of the rights: 07/04/2009
Date for despatch of abridged prospectus and subscription forms: 07/04/2009
Date for cessation of trading of the rights: 14/04/2009
Date for announcement of final subscription result and basis of allotment of excess Rights Securities: 27/04/2009
Listing date of the Rights Securities: 30/04/2009

Last date and time for Date Time
Sale of provisional allotment of rights: 13/04/2009 at 05:00:00 PM
Transfer of provisional allotment of rights: 16/04/2009 at 04:00:00 PM
Acceptance and payment: 21/04/2009 at 05:00:00 PM
Excess share application and payment: 21/04/2009 at 05:00:00 PM

if my account is a direct account, where shall i submit the form to?
& base on the above announcement, when was the ex-date?

They will send you the form, which either you sell it or use the form to subscribe it, the form inside will state where you need to send it, envelop might be attached as well.
Sorry, long long time never encounter right issue so might be outdated info, because I don't like to buy or hold those company stock that need to have right issue one.

If still don't know, you can see assistance from your broker, they are surely will help you.

Ex-date of right issue is 31 March.
Above posted annoucement is on the its right listing.

Sigh.. Maybank is about the only jewel in my investment right now.. .

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Added on March 20, 2009, 3:59 pmCherroy, one question. Will the rights issue affect the share price upon going ex? Should not right?

This post has been edited by Grengo01: Mar 20 2009, 03:59 PM

It will afffect the future share price, because the number of shares become more already aka its "surge-ability" is lessen.
In simple term you need more buyer compared to previous in order to surge at the same rate.

Unless they utilise the raised money efficiently to prop up the company profit in the future, then the right issue is positive to the company, but near term, all banks result will be affected due to recession economy,



This post has been edited by cherroy: Mar 20 2009, 04:08 PM

Thanks.. . Maybank broke up... LOL.. 4.36/38.... pray it goes up a wee bit more...

IF there is a market for the rights, there must be value to the rights.

If the rights are cheap, the entry cost via purchase price of rights + RM 2.74 (subscription cost) might be lower than buying the mother share ex rights.

This post has been edited by gilabola: Mar 21 2009, 12:20 AM

Surely its going up... 4.52/54.... long time coming... shld I take profit first?

RENOUNCEABLE RIGHTS ISSUE OF UP TO 2,212 MILLION NEW ORDINARY SHARES OF RM1.00 EACH IN MALAYAN BANKING BERHAD ("MAYBANK") ("RIGHTS SHARES") AT AN ISSUE PRICE OF RM2.74 PER RIGHTS SHARE, PAYABLE IN FULL UPON ACCEPTANCE, ON THE BASIS OF NINE (9) RIGHTS SHARES FOR EVERY TWENTY (20) EXISTING ORDINARY SHARES OF RM1.00 EACH HELD IN MAYBANK.

Kindly be advised of the following :

1) The Rights commence of trading : [ 7 April 2009 ]

2) The Date of Despatch of the Prospectus and Provisional Allotment Letter of Offer :
[ 7 April 2009 ]

3) The last day and time for Acceptance, Renunciation and Payment :
[ 21 April 2009 @ 5:00pm ]

4) The Rights cease quotation : [ 14 April 2009 ]

The Stock Short Name, Number and ISIN Code [ MAYBANK-OR, 1155OR and MYL1155OR003 ] respectively

Any idea why the MAYBANK share drop from yesterday 4.xx to 3.7 in the morning open session.

I am holding some maybank shares since last year. Have some noob questions to ask

1) I will receive subscription form on 07/04/2009 to buy new share, is it correct?

2) Is it good to subscribe the new shares now or pass on? I am really tight on cash but I don't want to miss it if this is a good opportunity to buy
maybank share at a discount.

1) Yes.

2) Actually we cannot say the right issue allow you to buy at discount, because basically when after the ex-right issue price, the 2.74 is taking account into it aka:
If the share price doesn't go above 3.66. Actually you earn nothing out of it (from the right issue exercise)

Whether sell it off the right to subscribe is depended on individual wish, no one can certain how future movement of Maybank share.

Maybank-OR should be traded at least around 10% discount. If not there is no incentive for other to buy the OR as they are better off to buy Maybank share directly from the market, don't need to do hassle job of buying the right and then subscribe it.

Is that mean if I don't want to subscribe, I can sell off the rights? Then I can make some profit without doing anything

You don't actually make any extra profit because your main share has depreciated after the ex-date. Only way you can make a profit when you sell your rights without subscribing is that people goreng the rights up and the main share up.

Either way, even if you don't sell your rights, at the end of the day you still will get extra Maybank shares when you subscribe to the rights.

Worse case scenario is that Maybank shares start to drop after rights issue and your share prices depreciate below the ex-right price.

But if you don't intend to subscribe but still want to hold the main shares, then sell your rights during the window.

If you don't sell it the rights and you don't subscribe as well, then you will lose big time.



This post has been edited by skiddtrader: Mar 31 2009, 10:47 PM

1. Do this subscrition extend to this who purchase at 31/Mar/09?
2. How about those purchase with only 1 lot of maybank share (1000 unit)?

1. No.
2. Entitled for 450 share rights.

me also... who knows y?

sorry noob here...
after the rights issue on 7 Apr, the share price will depreciate or stil remain the same?

Because the rights issue ex. there are some discussion on the calculation on this tread as well as the main tread, you might want to refer to them.
remain the same, but determine by market force.

Mind to explain or where I should refer this information.

I lazy, try to put up a very short one.
before the ex date, register will determine the rights belong to which interest party (shareholder). On the ex date, the rights already determined, then market have to response by deducting theoretical benefit of rights from the share price. So when the rights will be issue and so on might not be important anymore, except the rights share might flood the market once the whole process completed.