OCBC to raise S$3.3b from rights issue

[SINGAPORE] OCBC Bank yesterday announced an expected S$3.3 billion rights issue on the basis of 1-for-8 shares to pay for Hong Kong's Wing Hang Bank.

Founding family shareholder, the Lee group, will take up their full entitlement of about 26.7 per cent of the rights issue; the remaining 73.3 per cent have been jointly underwritten by Merrill Lynch (Singapore) Pte Ltd; HSBC, Singapore branch; and JP Morgan (SEA) Ltd.

The rights issue of up to 440 million new shares will be offered on the basis of one rights share for every eight shares at S$7.65 a piece.