Jan. 31, 2012 (China Knowledge) - Bank of Beijing
Co Ltd <601169
>, China's largest city lender by assets, has received approval from China Securities Regulatory Commission
to raise RMB 11.8 billion via a private placement.
This is the first fundraising after the lender launched its initial public offering in 2007.
lender said it will issue shares to nine selected investors at a price of RMB 10.67 apiece, compared with its closing price of RMB 9.95 on January 30.
The nine investors consist of Hawtai Motor Group Co Ltd, CITIC Securities Co Ltd<600030
>, Taikang Life Insurance Co, China High-tech Group Corp, South Industry Assets Management Co Ltd, Huaneng Capital Services Co Ltd, Liqin Investment, Kaiyuan Securities and The State Development & Investment Corp.
Proceeds from the issuance will be used to replenish working capital, said the issuer.
Bank of Beijing
's capital adequacy ratio and core capital adequacy ratio was 11.79% and 9.38%, respectively, as of September 30, 2011, each of which is expected to increase by two percentage points after the private placement.