Dah Sing Financial targets raising HK$2.2bln via rights issue

The company and its banking unit to use proceeds to strengthen their core capital and sustain business growth.

Dah Sing Financial Holdings Ltd. and its unit, Dah Sing Banking Group Ltd., plan to raise at least HK$2.2 billion (US$284 million) from rights issues to boost their capital base, the companies said in a joint statement Tuesday.

Dah Sing Financial said it plans to raise HK$1.2 billion (US$154.77 million) by offering shareholders one share for every eight existing shares held at HK$36.89 (US$4.76) each, while Dah Sing Banking plans to raise HK$1.0 billion (US$128.98 million) by offering one share for every 10 shares held at HK$9.00 (US$1.16) each, the statement said.
The offer prices represent a 40% discount to Dah Sing Financial's closing price Tuesday of HK$61.45 (US$7.93) and a 41% discount to Dah Sing Banking's closing price of HK$15.24 (US$1.97).

The companies plan to use the net proceeds to strengthen their core capital and to support the continuing development and growth of their business, the statement said.

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