Swiss lender St. Galler Kantonalbank completed its capital increase, raising gross proceeds of CHF176.5 million.

The placement price was set at CHF420 per share, with the offer significantly oversubscribed. Existing shareholders acquired 204,115 new shares in the bank through the offer, while 216,125 new shares were placed with public and institutional investors.

The bank said the capital increase will strengthen its equity base and allow for sustainable growth, adding that it intends to use the funds to prepare for any further increase in regulatory requirements.

The canton of St. Gallen, the lender's top shareholder, will continue to hold a 51% stake following the process. A nominal value increase of all outstanding registered shares to CHF80 from CHF70 is expected to take place in the summer, the bank noted.

Zürcher Kantonalbank acted as lead manager for the transaction, while St. Galler Kantonalbank acted as co-manager.