Regulators have given their approval to a non-public share offering by China’s Industrial Bank Co. that hopes to raise as much as 2.6 billion yuan in capital to shore up first-tier capital.
According to a previous announcements by Industrial Bank the private placement will be involve the issuance of 1.722 billion shares at a price of 15.1 yuan each to a total of six targeted recipients, including the Fujian province Ministry of Finance and the State Tobacco Monopoly Administration.
The raised capital will be fully directed towards supplementation of Industrial Bank Co’s core first-tier capital.
Industrial Bank Co. has embarked upon an aggressive expansion direct since its listing a decade ago, with branch entities increasing five fold and total assets surging from 617.7 billion yuan at the start of 2007 to 5,816.9 billion yuan in the September quarter of 2016.
Over the next five years Industrial Bank envisages transition towards a “light capital, high efficiency” model, and the creation of a “three model bank” based upon settlement, investment and transactions.