HKEx sells $1 billion of equity

Hong Kong Exchanges and Clearing HKEx returned to the capital markets last night to raise $1 billion through a follow-on share placement that was upsized by 25%.

Like the $500 million that it raised through a convertible bond in September, the money will be used to part-fund its 1.4 billion $2.2 billion acquisition of the London Metal Exchange LME that was announced in June.

The deal was launched shortly after the UK regulators approved the acquisition yesterday afternoon. The market had been expecting an equity fund-raising some time after the UK decision and the fact that it came immediately afterwards shows that the HKEx was...