China Merchants Bank to raise USD5.68 billion
China Merchants Bank Co. had planned to raise CNY34.8 billion through a share sale starting August 26. The deal is said to be the world's second biggest share sale this year. Once completed, the bank would have a bolstered capital that would suffice the tightened regulatory requirements of the country.
China Merchants Bank is the sixth biggest bank in the country by assets. The share sale to current stockholders was announced to be at CNY34 billion at maximum. The bank would offer around CNY3.75 billion shares on the Shanghai and Hong Kong bourse. This sale was valued at CNY9.29 per share piece or its equivalent in Hong Kong dollars. This was according to a statement released today to the Shanghai Stock Exchange.
The share sale would help China Merchants Bank to raise additional capital and accelerate growth. This was after competition with smaller rivals, including Industrial Bank Co. and China Minsheng Banking Corp., intensified.