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WZCB to raise CNY 7bn
Posted on Wednesday, 16 September 2020 12:04
Bank of Wenzhou (WZCB) is tapping shareholders for as much as CNY 7.00 billion (USD 1.03 billion) to bolster its capital strength, improve its structure and to help the lender continue to meet regulatory requirements.
The commercial institution will issue up to 2.37 billion new shares on a pro rata basis at a price of CNY 2.95 apiece.
Xinhu Zhongbao, which currently has a 18.2 per cent pre-issue stake, said it intends to subscribe for no more than CNY 170.00 million-worth of stocks in the rights issue.
WZCB’s predecessor, Wenzhou City Commercial Bank, was established in 1998 and had 29 urban credit and six financial services cooperatives, as well as eight offices, by the time it changed its name in 2007, according to its website.
The successor has since expanded across China, by setting up a footprint in Shanghai, Hangzhou, Ningbo, and nine other cities.
As of 30th June 2020, WZCB had total assets of CNY 234.81 billion, deposits of CNY 167.80 billion and loans of CNY 133.60 billion.
The lender booked net profit of CNY 622.00 million on operating revenue of CNY 2.52 billion in H1 2020, according to Xinhu Zhongbao’s statement regarding the rights issue.
WZCB also had total assets of CNY 230.47 billion in the 12 months ended 31st December 2019 and posted net profit of CNY 693.00 million on revenue of CNY 4.23 billion in 2019.
The lender is currently ranked third by assets, deposits and total credit financing among the province’s city commercial banks, according to the website.
Zephyr, the M&A database published by Bureau van Dijk, shows 911 rights issues have been announced globally so far this calendar year, of which WZCB’s ranks 18th.
It is also placed third out of the 24 such cash calls targeting the banking sector in 2020 to date.
© Zephus Ltd