OCBC to raise $2.7b in rights issue

SINGAPORE, Aug 18 (AFP): Singapore's Oversea-Chinese Banking Corp (OCBC) said on Monday it plans to raise $g$3.37 billion ($2.70 billion) in a rights issue to boost its balance sheet following its takeover of Hong Kong's Wing Hang Bank.

OCBC said in a statement it has received in-principle approval from the Singapore Exchange Securities Trading Ltd for its plan to issue 440.05 million new ordinary shares priced at Sg$7.65 each.

The offer is at a 25.0 per cent discount to Friday's closing price of Sg$10.20.

OCBC said the rights issue "will enable the company to balance its sheet and enhance the financial flexibility of the group" following its purchase of Wing Hang for $5.0 billion.

The Singaporean lender, one of Southeast Asia's largest listed banks, in a statement last month said it owns 98 per cent of Wing Hang.