HSBC Holdings (HKG:0005) said its stake in Bank of Communications (HKG:3328, SHA:601328), or BoCom, is expected to dilute from 19.03% to 16.06% if BoCom's proposed share issuance is approved, according to a Monday filing with the Hong Kong bourse.
BoCom plans to issue 13.78 billion new A-shares at 8.71 yuan, with a shareholder vote set for April 16. HSBC stated that the accounting impact of this dilution will be recognized upon completion but will not affect its dividend.
The impact on HSBC's CET1 capital ratio is expected to be insignificant. Further details will be provided in HSBC's Q1 2025 earnings report on April 29.
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