OCBC raises $2.7b in rights issue

Oversea-Chinese Banking Corp has raised S$3.37 billion $2.7 billion from a fully underwritten rights issue to help fund its acquisition of Hong Kong’s Wing Hang Bank.

According to a term sheet seen by FinanceAsia, 440 million shares are being sold at a ratio of one share for every eight held at S$7.65 per unit  a 25% discount to the August 15 closing price of S$9.92 per share.

OCBC's founders, the Lee family, have already agreed to buy 26.7% of the shares through the Lee Group Companies, a banker close to the deal told FinanceAsia. The joint underwriters...