Place your bets now

6 April 2009 By John Foley Follow @johnsfoley

HSBC s $18bn rights issue was a success. Two Chinese IPOs have prospered, and even defiant Rio Tinto is mulling a share issue. Instead of draining capacity, HBSC may have inspired confidence. The recent market bounce could create a slim opportunity for other issuers to follow.

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HSBC said its $17.7bn rights issue received 97% takeup by its shareholders. The capital raising lifts the UK bank's equity Tier 1 ratio, a common measure of bank solvency, to 8.5%.

Rio Tinto, the AngloAustralian miner, is considering a $10bn rights issue as a alternative to a sale of convertible bonds to Chinese rival Chinalco, the FT reported. The Chinalco deal, which will help pay down Rio's debt, has met with resistance from investors and is subject to shareholder and regulatory approval.

Silver Base, a Chinese distributor of liquor and cigarettes, priced its initial public offering at HK$3.45, the top of the range. The retail portion of the issue, 10% of the total, was 44 times oversubscribed.

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