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BoCom trims fundraising plan

By Yu Hongyan (chinadaily.com.cn)
Updated: 2010-06-07 11:27

Bank of Communications (BoCom) has scaled back its fundraising plan to about 33.1 billion yuan ($4.85 billion), down from the original target of 40.2 billion yuan, the Shanghai Securities News reported Monday.

The fund will be raised through a rights issue of 7.35 billion shares on the Shanghai and Hong Kong bourses, said the bank.

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BoCom aims to collect 17.5 billion yuan from 3.89 billion shares allotted on the Shanghai Stock Exchange, and 15.6 billion yuan from 3.46 billion shares allotted on the Hong Kong Stock Exchange.

Prices of the allotted shares are tagged at 4.5 yuan and HK$5.14 (66 cents) respectively.

Shares of BoCom closed at 6.39 yuan and HK$8.19 in Shanghai and Hong Kong respectively on June 4.

The bank said all the funds raised will be used to replenish its core capital.