ICBC to raise $6.8bln via rights issue

Central Huijin to participate in ICBC’s move to replenish capital following successful attempts of the bank’s rivals.

Industrial and Commercial Bank of China (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 China's "Big Four" state banks to raise funds to strengthen balance sheets weakened by last year's lending binge aimed at aiding China's economic recovery.

China Construction Bank Ltd (CCB) and Bank of China, 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 China, 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.

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.

View the full story in Reuters.