New | Citic Bank aims to raise 11.9b yuan in share placement to tobacco firm
State lender plans to place up to 2.46 billion A shares to raise funds to boost core tier-1 capital
China Citic Bank plans to raise up to 11.92 billion yuan (HK$15 billion) in a private placement of A shares to China National Tobacco Corp.
The state-owned bank plans to place up to 2.46 billion A shares at 4.84 yuan per share, the dual-listed bank said in a statement to the Hong Kong stock exchange on Wednesday night. Citic Bank’s Shanghai’s shares closed at 4.66 yuan on Wednesday, while its Hong Kong shares ended at HK$5.
“The private placement, after deducting the issue cost, will be fully used to replenish the bank’s core tier-1 capital,” Citic Bank said.
The bank’s net core tier-1 capital rose 10.77 per cent to 252.91 billion yuan on September 30 from 228.31 billion yuan at the end of last year, while its core tier-1 capital adequacy ratio grew to 9.29 per cent from 8.78 per cent.
After the placement, state-owned enterprise Citic Group will remain the controlling shareholder of Citic Bank.
The private placement is subject to shareholders’ approval at an extraordinary general meeting on December 16. Approval is also required by the Shanghai Stock Exchange and the Chinese authorities.
Citic Bank’s operating income rose 20.56 per cent to 92.61 billion yuan in the first nine months this year, while its net profit grew 4.6 per cent to 32.28 billion yuan.
