HONG KONG (Reuters) - China Oceanwide International Financial Ltd (0952.HK) said it planned to issue HK$18.25 billion ($2.34 billion) worth of new shares, raising capital to expand securities and brokerage businesses so as to maintain growth momentum and to enhance competitiveness.
The Hong Kong-based financial group said it would sell 16.59 billion rights shares to existing shareholders in the proportion of eight rights shares for every three shares held at HK$1.10 apiece, or a 6.8 percent premium to the previous close.
The net proceeds will also be used to fund acquisitions and the establishment of investment banking assets in Southeast Asia, to expand structured finance business, and for general working capital, it said in a filing to the Hong Kong bourse late on Monday.
The company said its equity base will be more in line with leading Chinese-backed investment banks in Hong Kong on completion of the deal, enabling it to be considered as a serious contender in that market segment.
($1 = 7.8151 Hong Kong dollars)
Reporting by Donny Kwok; Editing by Stephen Coates