Maybank's Rights Issue ex-date fixed

Maybank has fixed the ex-date for its Rights Issue ('RI') on March 31st. The RI of 9-for-20 was priced at RM2.74. From the chart below, we can see that Maybank has recruited sufficient buying support to stay above the RM4.00 level and further rebounded to test the horizontal resistance of RM4.30. If Maybank closed at RM4.30 on March 31st, the Theoretical Ex-rights price would be about RM3.816 (say, RM3.82) [derived by totaling up the cost of the RI shares (9,000 x RM2.74) plus closing price of original shares (20,000 x RM4.30), then dividing by 29,000]. As such, the discount of the RI shares to the Theoretical Ex-rights price would be about 28%.

On the other hand, if Maybank closed at RM4.50 on March 31st, the Theoretical Ex-rights price would be about RM3.954 (say, RM3.96) [derived by totaling up the cost of the RI shares (9,000 x RM2.74) plus closing price of original shares (20,000 x RM4.50), then dividing by 29,000]. As such, the discount of the RI shares to the Theoretical Ex-rights price would be about 31%.

I believe Maybank would well be supported by local institutional funds & hopefully it would trade between RM4.30 & RM4.50 from now to the ex-date of March 31st. Some stability in the share price would be good for the stock & would encourage shareholders to take up the RI.


Chart: Maybank's 30-min chart as at 20/3/2009 (Source: Quickcharts)