Credit Suisse on Monday said qualified investors have committed to buying 462 million new shares at a purchase price of 3.82 Swiss francs ($3.83), as it announced details of its capital hike.
The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. REUTERS/Arnd Wiegmannon Monday said qualified investors have committed to buying 462 million new shares at a purchase price of 3.82 Swiss francs , as it announced details of its capital hike.last week to tackle the biggest crisis in the company's history.
The price represented 94% of the volume weighted average price of Credit Suisse shares on Oct. 27 and 28, and will raise gross proceeds of 1.76 billion Swiss francs., giving it a 9.9% stake in Credit Suisse, the Swiss lender said. Existing investors meanwhile will get the chance to buy 889 million shares being offered at a price of 2.52 francs per share, with subscription rights corresponding to the size of their present stake.
It is expected that seven pre-emptive subscription rights will entitle their holder to purchase two new shares at a 32% discount on the reference price, Credit Suisse said. The gross proceeds of both capital increases is expected to be about 4 billion francs, the bank said.
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