Bank Islam takes over BIMB Holdings listing

KUALA LUMPUR – Bank Islam Malaysia Bhd (BIMB) today became the first pure-play, full-fledged Islamic financial institution to be listed on Bursa Malaysia’s Main Market after taking over the listing status from BIMB Holdings Bhd (BHB), marking the completion of the latter’s restructuring exercise.

With an estimated market capitalisation of RM6.3 billion, BIMB will capitalise on the growth in Islamic finance and the Islamic capital market.

“BIMB is embarking on a five-year business strategy road map to deliver on the promise of technology, redefine growth, and work in new ways to address the unprecedented challenges brought on by the Covid-19 pandemic,” said BHB and BIMB chief executive Mohd Muazzam Mohamed in a statement.

The bank will be “accorded full autonomy in undertaking and pursuing its corporate and business strategies, and adopt capital management initiatives with the completion of this corporate exercise”.

“With the listing, the bank will have access to a wider and diverse capital base, allowing for its efficient use towards greater support of its future expansion programmes and business growth, and in addition, the group will have greater scale and ability to support its organic growth.”

Muazzam said the listing opens opportunities for investors to participate directly in the equity and future growth of the new group, which includes BIMB Investment Management Bhd and BIMB Securities Sdn Bhd.

The BHB restructuring entails a private placement exercise, a scheme of arrangement to settle outstanding warrants, and the internal reorganisation of subsidiaries.

The internal business realignment also includes a distribution and capital repayment exercise involving the distribution of BHB’s entire shareholdings in the bank and Syarikat Takaful Malaysia Keluarga Bhd to its shareholders, and lastly, the transfer of the listing status of BHB in the Main Market to BIMB.

Concurrently, BHB will become a wholly owned subsidiary of the bank, with the latter assuming a parent company role. – Bernama, October 8, 2021