Merchants Bank to Raise Up to $5.4 Billion in Rights Offer
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China Merchants Bank Co., trading at the highest valuation among the nation’s Hong Kong-listed lenders, plans to raise as much as 35 billion yuan ($5.4 billion) in a rights offer in China and Hong Kong.
The country’s sixth-largest lender will offer 2.2 shares for every 10 held by investors, according to an exchange filing yesterday. The stock, which declined 0.2 percent to HK$18.10 by the midday break in Hong Kong, trades at 2.09 times its book value, according to data compiled by Bloomberg. That compares with the 1.69 average for its five larger domestic rivals.