50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Credit Suisse offers 889 million shares to existing investors in $4 billion capital hike

Published 11/24/2022, 12:11 PM
Updated 11/24/2022, 02:15 PM
© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021.   REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) -Credit Suisse has made 889 million new shares available to existing investors at 2.52 Swiss francs ($2.67) per share, the bank said on Thursday, confirming the final terms of its 4 billion franc capital hike.

The capital increase, which was approved by investors on Wednesday, is intended to fund the embattled bank's turnaround plan, an attempt to recover from the biggest crisis in its 166-year history.

The share issue is expected to raise roughly 2.24 billion Swiss francs, Credit Suisse said.

Switzerland's second biggest bank also confirmed it has issued 462 million new shares to qualified investors via a share placement, with Saudi National Bank the biggest investor after buying 307 million new shares to give it a stake of 9.9%.

The 4 billion francs Credit Suisse expects to raise from the share placement and the rights offering will be used to support its restructuring and shift away from investment banking.

Under the capital hike, shareholders will be allotted one pre-emptive subscription right for each share they hold on Nov. 25. Seven rights will allow the holder to purchase two new shares at the discounted price of 2.52 francs per share, with the exercise period running from Nov. 28 to 12.00 p.m. local time on Dec. 8.

The number of shares and the price are the same as previously outlined by the bank, based on a reference price set at 4.07 francs per share.

Credit Suisse shares, which have lost 59% of their value so far this year, closed on Thursday at 3.551 francs.

Earlier this week Credit Suisse flagged that it was on course for a pre-tax loss of up to 1.5 billion Swiss francs in the fourth quarter, continuing to bleed billions of francs as wealthy clients turn their back on the bank.

The listing on the Six Swiss Exchange and first day of trading for the new shares from the rights issue is expected to take place on Dec. 9.

© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021.   REUTERS/Arnd Wiegmann/File Photo

The nominal share capital of Credit Suisse Group has already risen 17% following the completion of the share placement portion of the capital hike.

($1 = 0.9431 Swiss francs)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.