Shares in HSBC Holdings ended flat yesterday after the closing of its rights issue, but at least 60,000 Hong Kong investors have committed to pay more than HK$40 billion for the discounted shares proposed by the British banking giant.
The stock had fallen 34.9 per cent to HK$31.53 between March 2, when the bank announced the rights issue, and March 9 but had since recovered 56.83 per cent to HK$49.45 yesterday.
A source said more than 90 per cent of the bank's estimated 67,000 investors in Hong Kong had taken up the rights issue. That represents one-third of the bank's global shareholder base of 210,000. Hong Kong shareholders also contributed about one-third of the proceeds of the issue.
A source said more than 80 per cent of HSBC shareholders in Britain had decided to take up their position in the rights issue.
Yesterday was the deadline for Hong Kong investors to file their applications for the proposed rights. Shareholders who take part in the rights issue will receive their allocations on Wednesday.
Pamela Chung Kong-hung, a transaction management director at Computershare Hong Kong Investor Services, declined to comment on the take-up figures but said: 'We have seen a very high take-up rate.'
