CIMB diluted their shareholders causing this drop? Is this the time to buy more?
Yesterday CIMB issued 10.5 million shares valued at RM 5.4348. Effectively valueing themselves at RM 5.4348.
However, certain analyst increased the target price for this stock.
Is this a sign to buy more? You decide.
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zyanlau : if this is the reason of the drop, that would be either employee taking profit or market being irrational. CIMB current share outstanding is 10,665,102,000, a dilution of 10,597,000 is less than 0.1% dilution, with price 5.4348 being the employee stock option, is roughly 20% discount for current price which is fair considering it's part of employee benefit.
That is very different than valuation, as employee enrolled in the stock option program can only contribute a certain % amount of their pay in exchange for the company stock.
Bryan_6an zyanlau:
