China Construction Bank (CCB; 601939.SH, 0939.HK) plans to raise US$9.2 billion in Asia’s biggest ever rights offer, Bloomberg reported. The offer, which is 18% less than the amount the bank originally sought, will see 630 million A-shares sold at RMB3.77 (US$0.56) each and 15.73 billion H-shares sold at HK$4.38 (US$0.56) each. Investors will be entitled to 0.7 share for every 10 shares held. CCB shares rose to almost a three-year high in Hong Kong Monday as the bank reported a 31% increase in third-quarter net profit to US$5.9 billion – higher than analysts’ estimates. The rights offer is priced at a 27% discount to CCB’s closing price in Shanghai Monday and at a 43% discount to its closing price in Hong Kong. Bank of China (601988.SH, 3988.HK) and Industrial and Commercial Bank of China (601398.SH, 1398.HK) are also preparing rights issues worth a combined US$15.7 billion. The country’s five largest banks have announced plans to raise about US$63 billion since the start of 2010.
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