Investors are braced for a wave of new capital raisings, following the completion of HSBC’s giant £12.5bn rights issue, the FT reported. The success of the offering, the biggest ever seen in the UK, frees underwriting capacity among banks and institutional investors, including some of the UK’s largest fund managers, which had promised to mop up any unwanted HSBC shares. Some banks expect more than $40bn (£27bn) to be raised by UK companies by the end of the year, including a possible rights issue from Rio Tinto, the mining group that has plans to raise $19.5bn from Chinalco, China’s state-owned mining company.

This entry was posted by Stacy-Marie Ishmael on Tuesday, April 7th, 2009 at 4:53 and is filed under Capital markets. Tagged with chinalco, hsbc, rio tinto. Edit this entry.