Everbright Bank to Raise $2.5 Billion Selling Shares to Parent

  • Company to sell 4 billion new H-shares to Everbright Group
  • Share-sale price is at 43 percent premium to last close

China Everbright Bank Co., a unit of the state-owned Everbright Group, said it will raise HK$19.6 billion ($2.5 billion) to replenish core capital by selling new Hong Kong-listed shares to its parent.

The company will sell 4 billion H-shares at HK$4.8962 each, a 43 percent premium to the last closing price, according to a Hong Kong stock exchange filing on Friday. The stock was unchanged at HK$3.43 on Sept. 11, its last day before a suspension. Trading will resume in Shanghai on Monday and in Hong Kong on Tuesday.

Huishang Bank Corp., a lender in Anhui province, said on Thursday it will sell shares in Hong Kong after deciding a planned mainland China initial public offering won’t happen soon. China suspended IPOs in early July as part of measures to shore up its stock market, which has lost $5 trillion of value in three months.

In March, before the market’s swoon, Everbright Bank said that it planned to split off its asset-management unit, a move that China International Capital Corp. said then would be a step toward an eventual separate listing.

Everbright Bank’s independent shareholders will vote at meetings on the share sale, which is also subject to approvals by regulators, according to Friday’s filing. Everbright Group’s stake will rise to 29.96 percent of expanded share capital from 23.96 percent now.

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