China Merchants Bank CMB has fixed the issue price of its upcoming $3.2 billion renounceable rights offering at a discount of as much as 46.1% to the theoretical ex-rights price for the H-share tranche and 42.7% for the A-share tranche. The deep discount is designed to help the country's fifth-largest lender by market value sail through its long-awaited deal successfully.
The subscription price -- HK$10.06 for the H-shares and Rmb8.85 for the A-shares -- was announced before the opening of trading yesterday, representing a 49.2% discount to the March 1 closing price of HK$19.80 in Hong Kong and a 45.7% discount to the closing price of Rmb16.30 in Shanghai on the same day....
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