Dah Sing Financial Group Ltd. and its Hong Kong bank unit plan to raise at least HK$2.2 billion ($284 million) in two rights offers to help boost the bank’s capital base.
Dah Sing Financial will sell at least HK$1.2 billion of shares to existing investors, according to a statement to the Hong Kong stock exchange today. Dah Sing Banking Group Ltd. will raise at least HK$1 billion in a rights offer, it added.
Dah Sing Financial is selling at least 32.5 million rights shares, or one new share for every eight existing shares, at HK$36.89 each. It will use about HK$742 million of the proceeds to subscribe to 82.4 million rights shares to be sold by Dah Sing Banking Group, maintaining its stake in the lender, the statement said.
Dah Sing Banking Group is selling at least 111.2 million rights shares, or one new share for every 10 existing shares, at HK$9 each, the statement said. It’s raising money for “continuing development and growth.”
Dah Sing Financial owns 74 percent of Dah Sing Banking Group. Dah Sing Financial controlling shareholder David Wong, who owns a 40 percent stake, has agreed to buy 12.6 million of its rights shares.
HSBC Holdings Plc is arranging both sales.
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