PREPARATIONS: Analysts said that fresh capital would help the company better prepare for IFRS 17 and new capital accrual regulations on overseas investments

Taipei Times
Date: Aug 19, 2019
By: Chen Cheng-hui  /  Staff reporter

Cathay Financial Holding Co (國泰金控) on Thursday last week announced plans to raise NT$20 billion (US637.63 million) in fresh capital by issuing new common shares to bolster the financial strength of its banking and insurance subsidiaries.

The proposed fundraising requires approval from the Financial Supervisory Commission (FSC) and the company’s shareholders.

The plan comes as the nation’s largest financial conglomerate by assets is preparing to strengthen its financial structure amid increased market volatility due to the US-China trade dispute and implementation of new International Financial Reporting Standards (IFRS), Cathay Financial president Lee Chang-ken (李長庚) said in late May.

The move would be the second rights issue for Cathay Financial in its 18-year history and the first such fundraising activity since 2013, when it raised NT$12.71 billion by issuing 353 million new common shares at NT$36 each.    [FULL  STORY]