Credit Suisse offers 889 million shares to existing investors in $4 billion capital hike

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The capital increase, which was approved by investors on Wednesday, is intended to fund the embattled bank’s turnaround plan as it recovers from a series of scandals and losses.

The share issue is expected to raise 2.24 billion Swiss francs, Credit Suisse said.

Shareholders will be allotted one pre-emptive subscription right for each share they hold on November 25, 2022.

The bank also confirmed it has issued 462 million new shares to qualified investors, including Saudi National Bank which bought 307 million new shares giving it a stake of 9.9% in Credit Suisse.

The bank expects to make 4 billion francs from the share placement and the rights offering to support its restructuring and shift away from investment banking.

The nominal share capital of Credit Suisse Group rose 17% to 124,511,584.16 as a result of the capital increase, it added.

($1 = 0.9431 Swiss francs)

(This story has been refiled to fix typo in headline)