Lloyds Banking Group on Tuesday launched the UK’s largest rights issue to raise £13.5bn, offering new shares at 37p each, a discount of nearly 40% ahead of a shareholder vote on Thursday. The rights issue is part of 43% state-owned bank’s mammoth £22.5bn capital raising and represents a discount of 59.5% to Monday’s closing price of 91½p and a discount of 38.6% to the theoretical ex-rights price, Lloyds said. But given its scale, accounting for well over half the bank’s £24bn market cap, the effect of dilution on the share price is considerable.

This entry was posted by Gwen Robinson on Wednesday, November 25th, 2009 at 4:47 and is filed under Capital markets. Tagged with Lloyds Banking Group. Edit this entry.