Banking News
- Minsheng wins approval for share sale
Date: 18-Jan-2007 Sources: (Shenzhen Daily)
CHINA Minsheng Banking Corp. said yesterday that the China Securities Regulatory Commission had approved its plan to sell up to 3.5 billion new domestic A shares to strengthen its capital base.
Minsheng's last closing stock price of 9.69 yuan values the placement at up to 33.92 billion yuan (US$4.35 billion), but the bank may not issue the maximum number of shares and analysts believe the shares would be priced at a discount to the market.
The placement to as many as 10 institutional investors has now won final regulatory approval. Shareholders approved the plan last August, but the placement was delayed by a disagreement over resulting changes to the shareholding structure, the Shanghai Securities News said.
Last June, Minsheng's capital adequacy ratio, a measure of its financial strength in relation to the size of its fast-growing business, fell to 7.46 percent, below the regulatory minimum of 8 percent.
The share sale, expected to proceed at the end of this month, will raise that ratio to 11.65 percent, the newspaper said.
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