China Guangfa Bank Co. Ltd. completed a private placement of 4,284,799,008 new shares.
The newly issued shares represent 21.76% of the bank's post-placement shares on issue. Proceeds from the placement will go toward improving the bank's capital strength and business expansion, among others.
China Life Insurance Co. Ltd., the bank's largest shareholder, subscribed for 1,871,875,329 shares, at 6.9511 yuan apiece, to maintain its shareholding at 43.69%. Jiangxi Provincial Expressway Investment Group Co., Ltd. and China Aviation Investment Co. Ltd. subscribed for 1,611,255,772 and 762,469,249 shares, respectively, to become the fourth and fifth largest shareholders of the bank, with stakes of 8.18% and 3.87%.
As of Jan. 4, US$1 was equivalent to 6.87 Chinese yuan.