Emerging markets lender Standard Chartered plc Monday surprised investors with plans to raise £1.8 billion ($2.7 billion) by selling new shares. The sum is small compared with recent banking share issues, but the institution, which is listed in London and does most of its business in Africa, Asia and the Middle East, had indicated in October it had no need to raise funds.
Standard Chartered is, at least, offering stock to existing shareholders. They will be entitled to 30 new shares for every 91 they own at a price of 390 pence, a discount of 49% to Friday's closing price. Peer Barclays plc last month infuriated its core institutional shareholders by turning to investors in Qatar and Abu Dhabi for the bulk of a £7 billion fundraising -- a plan which could leave the Middle Eastern backers with 32% of the enlarged bank. Barclays shareholders Monday begrudgingly approved the plan. - Laura Board
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