China's Pudong Bank Plans $2.28 Billion Stock Sale for Capitalby
Pudong Bank plans to sell shares to two existing stockholders
Pudong says facing up to $9.4 billion capital gap by end-2018
Shanghai Pudong Development Bank Co. plans to raise 14.8 billion yuan ($2.28 billion) in a private share placement to replenish capital.
The Chinese bank plans to issue as many as 921.7 million shares at 16.09 yuan each to Shanghai International Group Co. and Shanghai Guoxin Investment Development Co., the company said in a statement to Shanghai stock exchange Thursday.
Pudong will face a capital shortfall of as much as 61 billion yuan by the end of 2018, including a gap of 39 billion yuan in core tier-1 capital, the statement said.
The sale will require regulatory approval. Shanghai International will subscribe to a maximum 621.7 million shares, and Shanghai Guoxin will buy 300 million shares, the statement said.
Shanghai International owns 16.9 percent of the bank, while Shanghai Guoxin owns 2 percent, according to Bloomberg data. Shares will resume trading Friday.