9 March 2012
Malaysia Airports Holdings Bhd (MAHB) is expected to raise RM616mil from its private placement after fixing the issue price at RM5.60 a share.
The airport operator had earlier proposed private placement of up to 110 million new ordinary shares of RM1 each, representing 10% of the company’s issued and paid-up share capital, primarily to part-finance the additional capital expenditure incurred for the enhancements to its klia2 and also to defray expenses relating to the proposed private placement.
In a filing with Bursa Malaysia, MAHB said the issue price had been fixed at RM5.60 per placement share, representing a discount of about 0.9% to the closing market price of MAHB shares on Wednesday at RM5.65.
MAHB said its book-building exercise had been completed and had attracted domestic and foreign investors.
Maybank Investment Bank and JPMorgan Securities (Malaysia) Sdn Bhdare the joint placement agents for the private placement.
In an earlier filing, MAHB said this private placement would allow the company to meet its obligations in connection with the construction of klia2 and, at the same time, maintain the fast-track nature of the construction of the low-cost carrier terminal, which is scheduled to be completed in April 2013.
The construction work for klia2 started in October 2009.
It is now estimated to cost between RM3.6bil and RM3.9bil, at least 80% more than its provisional budget of RM2bil.
The increase in size and cost would cater to an expected 45 million passengers.
MAHB’s shares fell 3 sen to RM5.62 yesterday. The counter reached a one-month high of RM5.85 on Feb 22.
An analyst said the price drop was due to the private placement announcement as the exercise would dilute MAHB earnings per share. He added that the proceeds from the private placement would reduce the company’s gearing level although it would dilute the shareholding of major shareholders.
However, the analyst was positive about the long-term prospects of the klia2 development.
Hong Leong Research said MAHB’s earnings would be diluted 4.6% for the current financial year ending Dec 31 (FY12) and up to 9.1% for FY13 based on an assumed price of RM5.44 per placement share announced previously.