Martin Lee @ Sg
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OCBC Bank to Raise Funds From Preference Shares

Hot on the heel of DBS, OCBC has announced that they will be issuing as much as $1.5 billion dollars worth of preference shares.

However, unlike DBS, OCBC’s offer will be open to retail investors. Back in 2003, it had done the same with the shares having a dividend yield of 4.2%.

The question to ponder is, “why are the banks raising capital at this time?

At the end of March, OCBC had a healthy tier one capital ratio of 12.2%, DBS had 9.2% while UOB had 9.9%. The regulatory requirement for tier one capital is only 6%.

Perhaps they see a way to put the raised capital to some good use.

Leave a Comment:

lioninvestor says 12 years ago

Hi Calvin,

Yes, you are right. It’s on SGX.

Calvin says 12 years ago

where is the secondary market for trading this preference shares? SGX?

lioninvestor says 12 years ago

Hi Green,

You can refer to this post for details of the latest offering.

green says 12 years ago

Hi, when is the period/deadline for atm applications?

lioninvestor says 12 years ago

Hi Little,

If they make it available to retail investors, then it should be through methods similar to IPOs.

ie. ATM applications or placement through your brokers.

I’ll keep a lookout and update the site accordingly.

little says 12 years ago

Hi, I’m a newbie to investment. How/where do we apply for these preference shares or do I have to own an OCBC stock first?

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