OCBC seals rights issue with 171.5% subscription

And over 70% excess applications.

OCBC’s stellar position in the finance industry makes it an attractive catch for shareholders.

In its most recent rights issue launched last month, OCBC received an overwhelming response and closed with a subscription rate of 171.5%. It can be recalled that this issue was made to beef up the bank’s balance sheet after the Wing Hang takeover.

OCBC announced that at the close of the Rights Issue on 15 September 2014, the Rights Issue is fully subscribed. Valid acceptances and excess applications were received for 749,173,944 Rights Shares, representing 171.5% of the 436,775,254 Rights Shares available under the Rights Issue (based on the existing Shares held by Shareholders as at the Books Closure Date, fractional entitlements to be disregarded). This includes acceptances by the Lee Group Companies for an aggregate of 117,299,418 Rights Shares pursuant to the Irrevocable Undertaking.

A total of 10,785,907 Rights Shares, comprising fractional entitlements that are disregarded in arriving at the Shareholders’ entitlements to the Rights Shares, Rights Shares that are not validly taken up and Rights Shares that are not otherwise allotted for whatever reason in accordance with the terms and conditions contained in the Offer Information Statement, the ARE, the PAL and (if applicable) the Memorandum and Articles of Association of the Company, will be used to satisfy applications for excess Rights Shares.

Here’s more from OCBC:

A total of 6,803,456 “nil-paid” Rights which would otherwise have been provisionally allotted to Foreign Shareholders have been sold on the SGX-ST. The net proceeds of such sales after deduction of all expenses therefrom, will be pooled and thereafter distributed to Foreign Shareholders in proportion to their respective shareholdings or, as the case may be, the number of Shares entered against their names in the Depository Register as at the Books Closure Date and sent to them at their own risk by ordinary post.