MARKETS | Tony Chua, Hong Kong

Bank Of Communications culminates Hong Kong rights issue

BoComm was able to raise $2.29bln from the H-shares offering.

Bank of Communications Co., 19%-owned by HSBC Holdings PLC (HBC), said Thursday it has completed the Hong Kong portion of a US$4.8 billion ($617.32 million) rights issue in both Shanghai and Hong Kong.

China's fifth-largest lender by assets said it raised HK$17.78 billion (US$2.29 billion) in a rights issue in Hong Kong, representing 99.28% of the total number of rights shares available in the territory.

The bank offered new Hong Kong dollar-denominated H shares at HK$5.14 (US$0.66) each in the rights issue, according to a report in the Wall Street Journal.

In June, Bank of Communications completed the Shanghai portion of its rights issue, raising CNY17.1 billion (US$2.52 billion) via a rights issue of yuan-denominated A shares, or nearly 98% of its target of as much as CNY17.5 billion (US$2,58 billion).

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