Prudential Plc Drops 8%; To Raise Capital In Hong Kong

(RTTNews) - Shares of insurance company Prudential plc (PUK) are down more than 8% Monday morning after the company announced its plan to raise capital by issuing new shares in Hong Kong.

The company intends to raise up to 5 per cent of its issued share capital, or about 130.8 million shares, on the Hong Kong Stock Exchange.

Another 32.7 million shares may be issued subject to the level of any oversubscription, the company said.

The net proceeds from the offer are expected to be used for improving the company's financial flexibility and to redeem the existing high coupon debt.

The company has priced the offer at not more than HK$172 per share.

Trading of the new shares are expected to start on Monday October 4, on the Main Board of the Hong Kong Stock Exchange.

PUK, currently at $36.41, has traded in the range of $23.99 - $44.99 in the last one year.