Slim demand for Barclays offer gives Qatar 8% stake

By Steve Slater

LONDON (Reuters) - Qatari and Asian investors will provide the bulk of Barclays' 4.5 billion pound fundraising after the British bank said on Friday less than a fifth of its existing shareholders signed up to buy shares.

Qatari investors -- who have taken an 8 percent stake -- made a quick paper profit of 200 million pounds ($400 million) on their holding after a surge by bank stocks. But the sector rally came too late for HBOS, whose underwriters are set to be left with most of a 4 billion pound rights issue.

Barclays, Britain's third-biggest bank, said last month it had raised funds from major investors in Qatar, Japan, China, Singapore and elsewhere and it would give existing shareholders the chance to buy on the same terms.

That allowed them to buy shares at 282 pence each -- a 9 percent discount at the time of the offer -- to prevent their stake being diluted.

Barclays said shareholders signed up to buy 267 million new shares, or 19 percent of those offered, which analysts said was within expectations after the shares dipped below 282p in the days before the deadline, reducing the incentive to buy.

The remaining 1.14 billion shares will be taken by the previously announced "anchor" investors -- rather than leave the market to soak up unwanted stock.

"It was a very well structured and intelligent way of raising capital, it avoided the pitfalls that have been associated with rights issues," said Mamoun Tazi, analyst at MF Global. "Barclays gave the opportunity to existing shareholders and filled the void with new investors."

The structure also allowed Barclays to raise funds quicker than rivals such as HBOS, which unveiled its cash call two months before Barclays but only closed the offer on Friday.