Brief IPOs & Placements: RHB Bank Placement – A Little Less Surprising but Little Bit Bigger Deal and more

In this briefing:

1. RHB Bank Placement – A Little Less Surprising but Little Bit Bigger Deal

1. RHB Bank Placement – A Little Less Surprising but Little Bit Bigger Deal

Aabar Investments, plans to sell US$250m worth of its RHB Bank Bhd (RHBBANK MK) or about 4.76% of company to reduce its holding to just under 10%. 

This is the second sell-down by Aabar in less than a year. The earlier selldown in August 2018, RHB Bank Placement – Probably More Selldown in the Coming Months, was priced at the low-end and didn’t do much in the first week. That was a smaller and less well flagged selldown. 

Although, the stock has done well since then and is trading 12.5% above the last selldown price. The deal scores well on our framework given its strong earnings and price momentum. However, the overhang risk from the remaining 9.9% stake held by Aabar remains.