Deutsche Bank seeks €8b via share sale
FRANKFURT: Deutsche Bank AG said it will raise €8 billion (RM38.16 billion) by selling stock at a 35 per cent discount to last week’s closing price as Germany’s largest lender seeks to shore up its finances and boost growth.
The company would issue 687.5 million new shares at €11.65 apiece, it said in a statement on Sunday, in-line with the firm’s March 5 announcement on the planned sale.
The offer compares with the stock’s closing price of €17.86 on Friday, and is almost 41 per cent lower than where the stock traded when Bloomberg first reported that the bank was weighing a capital raising.
Existing investors will be able to acquire one new share for each two they now hold.
The sale, which will run from today through April 4, will be the fourth capital infusion for Deutsche Bank since 2010.
Chief executive officer John Cryan, who had previously said he didn’t want to tap shareholders, reversed course this month after the shares almost doubled from their September low and Deutsche Bank was unable to find a buyer for a consumer banking unit. Bloomberg
Deutsche Bank AG will raise €8 billion by issuing new shares at €11.65 apiece, which is a 35 per cent discount to last week’s closing price.