Bank set to raise US$3.2b via rights
By Zhang Fengming |
March 3, 2010, Wednesday
|
Print Edition
Print Edition
CHINA Merchants Bank said yesterday it will launch a planned rights offer this week to raise 22 billion yuan (US$3.2 billion).
The Shenzhen-based bank will offer 1.3 shares for every 10 held to issue 2.03 billion yuan-backed A shares in Shanghai and 449 million H-shares in Hong Kong, the lender said in a filing to the Shanghai Stock Exchange yesterday.
The bank priced the shares at 8.85 yuan each in Shanghai, the bank said.
"The rights offer can boost the bank's capital adequacy ratio to 11.5 percent to support its development for three years," said China International Capital Corp in a note yesterday. "The offer can act as a catalyst to the bank's shares because the capital raising helps trim uncertainties about the bank's expansion."
CICC rated the bank as a "buy."
Chinese banks are queuing up to raise capital through new shares offering or bond sales to replenish funds after they lent aggressively in 2009.
The Bank of China, the Bank of Communications, Hua Xia Bank have also announced capital raising plans.
China Merchants Bank ended at 16.46 yuan in Shanghai yesterday, up 0.98 percent. The benchmark Shanghai Composite Index lost 0.48 percent to 3,073.11.
The Shenzhen-based bank will offer 1.3 shares for every 10 held to issue 2.03 billion yuan-backed A shares in Shanghai and 449 million H-shares in Hong Kong, the lender said in a filing to the Shanghai Stock Exchange yesterday.
The bank priced the shares at 8.85 yuan each in Shanghai, the bank said.
"The rights offer can boost the bank's capital adequacy ratio to 11.5 percent to support its development for three years," said China International Capital Corp in a note yesterday. "The offer can act as a catalyst to the bank's shares because the capital raising helps trim uncertainties about the bank's expansion."
CICC rated the bank as a "buy."
Chinese banks are queuing up to raise capital through new shares offering or bond sales to replenish funds after they lent aggressively in 2009.
The Bank of China, the Bank of Communications, Hua Xia Bank have also announced capital raising plans.
China Merchants Bank ended at 16.46 yuan in Shanghai yesterday, up 0.98 percent. The benchmark Shanghai Composite Index lost 0.48 percent to 3,073.11.
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