Kina Securities set to open retail rights offer

It's almost time for mum and dad shareholders in PNG bank owner Kina Securities to step up.

And that's because the retail portion of Kina's $70 million one-for-two rights issue opens at 5pm on Thursday this week and is expected to settle on Wednesday, October 7.

The raising - which is $91 million in total and included a $10.5 million placement - was revealed by Street Talk earlier this month, along with the revelation that Kina could potentially use the money to snare Westpac Banking Corp's up-for-sale Pacific unit.

Sources said on Monday it was still a two-horse race for Westpac's Pacific arm, with Kina facing off against French bank BRED-Banque Populaire.

An acquisition would further bolster Kina's presence in the region; the company already owns PNG's second-largest retail bank with 21 bank branches in PNG and customer loans worth $540 million on its balance sheet as of June 30.

If Kina did win the race for Westpac's Pacific arm, it would mark its second acquisition from a big four bank in the past two years. Only last year Kina acquired ANZ Banking Group's retail, small business and commercial business in PNG.

The $185 million Kina launched the equity raising to boost its funding credentials in the auction as well as get some growth capital in the door. Stockbroker Morgans is lead manager on the deal.

The placement and entitlement offer were offered at 80¢ a share, which was a 14.4 per cent discount to Kina's last close at the time. Kina shares were trading around 79¢ on Monday.