KUALA LUMPUR (June 6): CIMB Group Holdings Bhd (KL:CIMB) announced that trading in the shares of its subsidiary CIMB Thai Bank was suspended on the Thai stock exchange from June 5 for not meeting the 15% public shareholding rule.

In a voluntary filing with Bursa Malaysia, CIMB said under new rules effective March 24, 2024, non-compliance now leads to a trading suspension instead of fines. CIMB Thai had been paying fines since 2011 for this issue.

The suspension followed a one-year public consultation on CIMB Thai’s non-compliance with the free float rule and possible delisting, with no objections raised.

If the 15% public shareholding isn’t met within a year, the shares could be delisted, depending on the Stock Exchange of Thailand's decision. CIMB said it does not plan to increase the public shareholding in CIMB Thai. 

CIMB said the suspension and possible delisting will not affect CIMB Thai’s customers, operations, or financial health. It remains a key part of the group and will continue normal banking activities.

CIMB Thai is a 94.83%-owned subsidiary of CIMB Bank Bhd, which in turn is wholly owned by CIMB Group.

CIMB shares fell three sen or 0.4% to RM6.84, giving the group a market capitalisation of RM73.5 billion. The counter has dropped 15.87% year-to-date.