Deutsche Bank, Germany's biggest lender, said on Thursday the 300 million new shares it is issuing in its planned capital hike will be issued at 22.50 euros each. The issue is intended to raise nearly 7.0 billion euros ($9.5 billion) to strengthen the balance sheet against a background of new post-crisis rules, and also oversight by the European Central Bank. "Deutsche Bank today fixed the subscription price for new shares issued as part of the capital increase at 22.50 euros per share," the group said in a statement.
"Deutsche Bank will issue a total of 299.8 million new shares in public offerings in Germany, the United Kingdom and in the United States," the statement said. The capital increase was a so-called "rights" issue, which meant that the new shares would be offered to existing shareholders first. They would be able to subscribe to five new shares for every 18 already held, the bank said. The subscription period is expected to run from June 6-24. "The gross proceeds from the offering, will amount to 6.75 billion euros," the statement said.
Last month, Deutsche Bank unveiled plans for the second-biggest capital increase in its history in a bid to bolsters its capital reserves. Deutsche Bank said it had placed 60 million shares at a price of 29.20 euros apiece with Paramount Holdings Services, the investment of the Qatari royal family. On top of this, it would issue up to 300 million new shares, bringing the total new capital raised to more than 8.0 billion euros.
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