皇冠体育app

Banking

ICBC to raise $6.8b in HK, Shanghai rights issue

(Agencies)
Updated: 2010-11-11 13:10
Large Medium Small

SHANGHAI - Industrial and Commercial Bank of 皇冠体育app (ICBC), the world's most valuable lender, said on Thursday it plans to raise 45 billion yuan ($6.78 billion) through a rights issue this month to replenish capital.

ICBC, which first unveiled the plan in July, is the last among 皇冠体育app's "Big Four" state banks to raise funds to strengthen balance sheets.

皇冠体育app Construction Bank Ltd (CCB) and Bank of 皇冠体育app, the country's second- and fourth-largest lenders, have detailed plans to raise a combined $18.2 billion through rights issues this month, while Agricultural Bank of 皇冠体育app, the No 3 lender, raised $22.1 billion in a record IPO in July.

ICBC said in an exchange filing that it would sell 0.45 shares for every 10 existing shares, at steep discounts to its market prices.

ICBC to raise $6.8b in HK, Shanghai rights issueReal estate sector shows signs of cooling
Related readings:
ICBC to raise $6.8b in HK, Shanghai rights issue ICBC eyes expansion in Greater Mekong Sub-Region
ICBC to raise $6.8b in HK, Shanghai rights issue 
ICBC to raise $6.8b in HK, Shanghai rights issue 皇冠体育app's ICBC eyes more acquisitions in SE Asia
ICBC to raise $6.8b in HK, Shanghai rights issue ICBC starts expansion into insurance sector
The Beijing-based lender, which will start taking subscriptions from investors on Nov 16, priced the issue at 2.99 yuan per share in Shanghai, 37 percent lower than its last closing price of 4.74 yuan.

Its Hong Kong shares will be sold at HK$3.49 apiece, at a 47 percent discount to its market price of HK$6.63.

ICBC's state parent, Central Huijin, a unit of 皇冠体育app's sovereign wealth fund, has said it would fully participate in the rights issue.

Smaller lender Nanjing Bank also said on Thursday that it plans to raise up to 5 billion yuan via a rights issue in Shanghai.

Except for the "Big Four" banks, Chinese lenders including Bank of Communications and 皇冠体育app Merchants Bank have raised a combined $10.5 billion so far this year through rights issues, according to Thomson Reuters data, to replenish capital depleted by last year's record lending.

Bank of 皇冠体育app said on Thursday its $9 billion rights issue was 99.57 percent subscribed.