SEHK:1288Banks
Should State Backed Share Sale Require Action From ABC Shares Investors?
Agricultural Bank of China has approved a conditional private placement of A shares of up to CNY 160b, including CNY 130b from the Ministry of Finance and multiple China National Tobacco entities, subject to shareholder and regulatory approvals and a 5 year lockup.
The size of the capital raise and the long lockup by state backed investors indicate a more heavily capitalised balance sheet and may provide support for future lending capacity.
With such a large state backed private placement on...