CIMB boosts capital ready for business expansion

CIMB Thai president and chief executive Kittiphun Anutarasoti announced on Friday that shareholders had approved a Bt2.753-million increase in the bank’s registered capital through the issuance of more than 5.5 million new ordinary shares to existing shareholders.
The new shares with a par value of 50 satang would be issued in proportion to their holdings at a ratio of two shares for every nine existing shares, at an offering price of Bt1 each, Kittiphun said. 
The subscription and payment period was May 29-June 2. 
The bank is seeking to increase its competitiveness and strengthen capital position to accommodate business expansion, the president said.
He said the offering process is now completed, with full subscription of rights shares, leading to a Bt2.753-million increase in registered capital from Bt12.387 million to Bt15.140 million and the BIS ratio as of March 31 increased to 19.1 per cent.
Kittiphun said the capital increase demonstrated strong commitment from CIMB Group, a 93.7-per-cent shareholder, to strengthen the bank’s capital position for further expansion. 
CIMB Thai would continue to be a major strategic market of CIMB Group, which provides financial support to cross-border trading in Southeast Asia, he said.
“The bank is in transformation, which is a key strategy for moving one step ahead to achieve our medium-term target of becoming a mid-tier bank with [regional] strength in Thailand,” Kittiphun said. “We are determined to make changes and enhance our services to deliver the best customer experience.”