Industrial Bank Plans 26B Yuan Private Placement


Industrial Bank (601166) plans to issue up to 2.07 billion shares in order to raise a maximum of 26.38 billion yuan from a private placement to PICC Asset Management, China Tobacco, Beijing Infrastructure Investment, and Shanghai Zhengyang International Trade, reports, citing a company filing.

China Tobacco will spend 5.21 billion yuan to subscribe to 409 million shares at 12.73 yuan per share, increasing its stake in the bank to 3.18 percent.

PICC Asset Management will invest 17.57 billion yuan to subscribe to 1.38 billion shares at 12.73 yuan per share, upping its stake in the bank to 10.92 percent.

The insurer and its managed accounts previously held 23.62 million shares, or a 0.22 percent stake, in the bank.

Through the end of September 2011, Hang Seng Bank (0011.HK), the second-largest shareholder of Industrial Bank, owned 1.38 billion shares.

Beijing Infrastructure Investment will subscribe to 157 million shares with an investment of two billion yuan, while Shanghai Zhengyang will spend 1.6 billion yuan to obtain 126 million shares.

Industrial Bank had total assets of 2.09 trillion yuan at end September 2011, up 13.11 percent from the beginning of 2011.

During the first nine months of 2011, the bank recorded net profit of 18.79 billion yuan, an increase of 38.2 percent year-on-year.

The bank had capital adequacy ratio of 10.92 percent and core capital adequacy ratio of 8.08 percent as of end September 2011, close to the regulatory requirement.

Industrial Bank said the net proceeds raised will all be used to boost its capital.

Shares of the bank fell 1.33 percent to trade at 14.12 yuan per share at 9:37 today.


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