HSBC shares volatile ahead of $18 billion rights issue
Europe’s biggest, HSBC, remains volatile ahead of $18 Billion rights issue after shares fell by 24 percent when large investors shorted the stock ahead.
The shares fell to HK$33 on Monday, the lowest ever since 1995 and rose 14.6 percent at HK$37.80 on Tuesday.
In London, HSBC shares dropped 5.76 percent.
The bank seeks to raise money through a right issue from the shareholders, and bolster its capital position. It will offer five shares for 12 shareholders, at a price of 254 pence each or HK$28.00, a discount of about 24 per cent to the current price.
The bank will hold an extraordinary shareholder meeting to approve the capital rising Thursday next week, and the rights will start trading the following day. Final results of the rights issue will be announced on April 8.
HSBC shares rose 4.6 percent on Wednesday trading.