Credit Suisse Group AGCS has enlarged the banking syndicate underwriting the rights issue and announced the reference price for the proposed CHF4 billion capital raise.
It said new investors have committed to buying 462 million new shares at a purchase price of CHF3.82, equivalent to 94% of the volume weighted average price of Credit Suisse shares on Oct. 27 and 28, raising CHF1.76 billion.
Some 307.6 million new shares are expected to be bought by Saudi National Bank, giving it a 9.9% stake in Credit Suisse.
Existing investors can buy 889 million shares at CHF2.52 per share, with subscription rights corresponding to the size of their present stake.
It is expected that seven pre-emptive subscription rights will entitle holders to purchase two new shares at a 32% discount on the reference price, Credit Suisse said.
If shareholders reject the plan, Credit Suisse said it would issue 1.8 billion new shares at an offer price of CHF2.27 per share, which would still enable it to raise 4 billion francs.
Price Action: CS shares are up 3.56% at $4.07 during the premarket session on the last check Monday.
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