OCBC rights issue closes with 171.5% subscription
A RIGHTS issue launched by OCBC Bank last month has received an overwhelming response, closing with a subscription rate of 171.5 per cent.
The bank had launched the $3.3 billion rights issue to beef up its balance sheet after completing its takeover of Hong Kong's Wing Hang Bank.
The issue offered shareholders the chance to buy one rights share for every eight OCBC shares they held.
The rights shares were priced at $7.65 each.
"The subscription rate of 171.5 per cent for our rights issue, including excess applications of more than 70 per cent, is among the top subscription rates for a rights issue in Singapore," noted OCBC chief financial officer Darren Tan yesterday.
"We view this as a further affirmation by our shareholders, both institutional and individual, of our long-term strategy to expand systematically into our core markets in Asia."