HLIB Research has given Affin Holdings Bhd (AHB) a “hold” call with a target price of RM2.80 on the back of the Group obtaining the green light for its reorganisation. (File photo)

KUALA LUMPUR: HLIB Research has given Affin Holdings Bhd (AHB) a “hold” call with a target price of RM2.80 on the back of the Group obtaining the green light for its reorganisation.

AHB said last week that it has received approvals from regulators Bank Negara Malaysia (BNM), the Ministry of Finance (MOF) and the Securities Commission (SC) for its reorganisation exercise.

"The approvals are earlier than expected as it was initially guided to be around Oct-Nov 2017. We are not surprised if AHB is able to list on Bursa faster than initial guidance of 10 months from first announcement in February," said HLIB Research in its newsbreak report today.

The research house, which is a Hong Leong Investment Bank unit, wrote that it expects the reorganisation to have no major impact to the company's financials.

"There are benefits, such as direct access to capital and improved bank’s profiling. (Our) forecasts are maintained," HLIB Research said.

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