The potential merger of RHB Capital Bhd (RHB Cap) and OSK Investment Bank Bhd's (OSK IB) would create the largest broker in Malaysia which would capture 15 per cent share of market trading value to top CIMB's current lead at 10.4 per cent.
HwangDBS Vickers Research said the merger would enable RHB Cap to tap into OSK’s entrenched retail channel (750 remisiers and dealers) to distribute equity and debt offerings, while grabbing a niche position in the capital markets.
"OSK IB’s growing presence in Indonesia under OSK Nusadana Securities Indonesia with 1-2 per cent market share in equity and debt is also coveted," it said in a statement today.
RHB Cap has yet to have a presence in Indonesia and its proposed acquisition of Bank Mestika is currently on hold, awaiting Bank Indonesia’s finalisation of the single ownership limit rule, the research firm said, adding the merger would provide RHB Cap a good entry platform in the Indonesian capital markets.
HwangDBS also estimated the merger to add 5-6 per cent to RHB Cap's group net profit and reiterated a 'buy' call for RHB Cap with a target price of RM9.60 per share (upside of 25 per cent). --Bernama
HwangDBS Vickers Research said the merger would enable RHB Cap to tap into OSK’s entrenched retail channel (750 remisiers and dealers) to distribute equity and debt offerings, while grabbing a niche position in the capital markets.
"OSK IB’s growing presence in Indonesia under OSK Nusadana Securities Indonesia with 1-2 per cent market share in equity and debt is also coveted," it said in a statement today.
RHB Cap has yet to have a presence in Indonesia and its proposed acquisition of Bank Mestika is currently on hold, awaiting Bank Indonesia’s finalisation of the single ownership limit rule, the research firm said, adding the merger would provide RHB Cap a good entry platform in the Indonesian capital markets.
HwangDBS also estimated the merger to add 5-6 per cent to RHB Cap's group net profit and reiterated a 'buy' call for RHB Cap with a target price of RM9.60 per share (upside of 25 per cent). --Bernama
