China Merchants Bank sets rights issue price

The country’s fifth-largest lender offers its shares at an average discount of 44.4% to the theoretical ex-rights price of its A- and H-shares.

China Merchants Bank CMB has fixed the issue price of its upcoming $3.2 billion renounceable rights offering at a discount of as much as 46.1% to the theoretical ex-rights price for the H-share tranche and 42.7% for the A-share tranche. The deep discount is designed to help the country's fifth-largest lender by market value sail through its long-awaited deal successfully.

The subscription price -- HK$10.06 for the H-shares and Rmb8.85 for the A-shares -- was announced before the opening...

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