Page last updated at 11:20 GMT, Sunday, 5 April 2009 12:20 UK

Strong support for HSBC cash call

HSBC logo
HSBC has fared better than most banks in the past year

HSBC's shareholders have bought 96.6% of the new shares they were offered.

Unlike many of its rivals, HSBC has not received government support, but it still needed some extra funding as a result of the credit crunch.

The $17.7bn (£12.5bn) raised by HSBC makes this the largest rights issue in UK corporate history.

The take-up was not a big surprise because the shares were being offered at 254p each, but were trading on the London Stock Exchange at 435p each.

"We remain confident that HSBC is well-placed in today's environment and that our strength leads to opportunity," said HSBC chairman Stephen Green, suggesting that he might be on the look-out for acquisitions.

The previous biggest rights issue was the £12bn offered by Royal Bank of Scotland in June 2008, 95% of which was taken up.

The take-up of the new shares is in stark contrast to some other rights issues from UK banks in the past year.

HBOS raised £4bn in July 2008, but only 8.3% of the shares were bought by its existing shareholders with the rest going to the underwriters.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific