Weihai Bank Co., Ltd. Proposes Issuance of Domestic and H Shares

Strategic Insights -

Weihai Bank Co., Ltd., a major financial institution in Hong Kong, has announced plans to improve its capital adequacy ratio by issuing a significant number of domestic and H shares to eligible investors. The proposed issuance, totaling 758,020,103 domestic shares and 153,834,000 H shares, aims to bolster the bank's core Tier 1 capital and ensure regulatory compliance. The move is part of the bank's efforts to support the development of the real economy and sustain its business growth.

Key Takeaways:

  • The bank plans to issue up to 758,020,103 domestic shares and 153,834,000 H shares to eligible investors to enhance its capital adequacy ratio.
  • The net proceeds from the issuance will be used entirely to supplement the bank's core Tier 1 capital.
  • The issuance is subject to Shareholders' approval for the grant of a Specific Mandate and will constitute a change in the class rights of domestic Shareholders and H Shareholders of the Bank under the Articles of Association.
  • Shandong Hi-Speed Group and Shandong Hi-Speed, controlling shareholder and substantial shareholder of the bank, respectively, may participate in the issuance and constitute connected transactions.
  • The bank will convene an Extraordinary General Meeting and a Class Meeting to seek Shareholders' approval for the grant of a Specific Mandate and for Shandong Hi-Speed's Subscription.

Statistics:

  • Up to 758,020,103 domestic shares to be issued.
  • Up to 153,834,000 H shares to be issued.
  • Net proceeds from issuance to be used entirely to supplement core Tier 1 capital.
  • Shareholders' approval required for grant of Specific Mandate and change in class rights.

Sources:

  • Weihai Bank Co., Ltd. (2025) Recruitment of Gram Capital Limited as Independent Financial Adviser https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0731/2025073101704.pdf