ICBC Refinancing Plan to be Examined Soon

The China Securities Regulatory Commission November 1 stated in an announcement that it was to examine the additional share offering plan by Industrial and Commercial Bank of China (ICBC, SHSE: 601398, SEHK: 1398) on November 5.

The ICBC board July 28 passed a proposal that the bank was set to offer not more than 0.6 shares for every ten shares held in Shanghai and Hong Kong, raising at most CNY 45 billion in capital. The bank's general meeting of shareholders held on September 21 also agreed the share placement program.

Two majority shareholders, Central Huijin Investment Ltd. and the Ministry of Finance, have made commitments to buy in the additional share offering. They will invest CNY 15.939 billion and around CNY 15.899 billion in terms of the stakes owned respectively, totalling CNY 31.838 billion in capital.

Industrial and Commercial Bank of China became the most profitable lender worldwide by CNY 84.6 billion net profit in the first half of the year, but its capital adequacy ratio and core capital adequacy ratio were off to 11.34 percent and 9.41 percent separately.