Industrial Bank Co plans to raise 18 billion yuan ($2.6 billion) in 2010 in the third-largest share sale announced by a Chinese lender this year to ensure it has enough capital to meet increasing loan demand.
The Chinese lender, which is backed by a HSBC Holdings Plc unit, will offer 2.5 shares for every 10 held, according to a statement to the Shanghai exchange. The sale needs approval from the nation’s banking and securities regulators. Industrial Bank’s planned offer will raise funds after its capital ratio fell below a target set by the banking watchdog. Rival China Minsheng Banking Corp got $3.8 billion last week from a share sale in Hong Kong, and China Merchants Bank Co aims to raise 22 billion yuan with a rights offer by year end.
Industrial Bank shares rose 2.1 per cent to 41 yuan in Shanghai as of 10:28 am.