The Chinese bank ICBC could raise $ 6.6 billion
July 8, 2010
ICBC world's largest bank by market value, could raise up to 6.6 billion dollars (5.2 billion euros) of new money, say sources.
The big Chinese banks are trying to raise capital undermined by excessive lending policy promoted by the state last year.The aim is also to meet new capital requirements made by the regulator.
These massive fundraising – witness the biggest IPO of all time made Tuesday by Agricultural Bank of China (AGBANK) – weigh on Chinese stock markets, whose performance is among the worst in the world this year.
However, the starting price for the IPO AGBANK Tuesday night has resulted in no surprises and Beijing should accept massive fund raising for other institutions, which should alleviate the Chinese places and might make investments without hitch, analysts say.
Industrial and Commercial Bank of China (ICBC) will offer its shareholders the right to subscribe for 0.3 to 0.5 new share for every ten held, the newspaper Ming Pao in Hong Kong Wednesday.
On the basis of a float of 334 billion shares, these reports would 10-16700000000 of new shares, according to Reuters calculations.
ICBC was not immediately available.
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