China Merchants Bank Co. had raised USD27.5 billion in the Shanghai rights offer. This would pave the way for Merchants Bank to complete the world's third biggest share sale this year. Investors who held 96.4% of the traded shares in Shanghai subscribed to the offer, according to Merchants Bank's filing today. Last month, the Shenzhen-based lender said that it had planned to raise CNY34.8 billion.
Merchants Bank planned offering 3.07 billion shares listed on the Shanghai Stock Exchange last month. The shares were priced CNY9.29 a piece. Shares would also be traded in Hong Kong valued CNY11.68 each. The bank said that the result of the Hong Kong sale last month would be announced on September 26.
The proceeds of the sale would be used to meet the capital needs of the bank in over five years. It would also be used to speed up growth. Furthermore, a portion of the proceeds would be used as competition had grown with its smaller rivals.
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