Credit Suisse abandons IPO plans
Financial services company wants to raise $4bn in a rights offering and has abandoned its plans to hold a partial initial public offering of its Swiss business
Zurich — Credit Suisse Group announced plans to raise $4bn in a rights offering, abandoning plans to hold a partial initial public offering (IPO) of its Swiss business. "We have decided not to pursue a partial initial public offering of our Swiss banking subsidiary Credit Suisse (Schweiz), thus retaining full ownership of a historically stable income stream in our home market of Switzerland and avoiding complexity in the business structure and activities of a key division of the group," the bank said in a statement on Wednesday. A project that began in late 2015, the Swiss listing ran into opposition from analysts and investors, who questioned the merit of splitting a business that generates more pretax profit than other units. Credit Suisse’s shares have rebounded from a record low in July, making it more attractive for the bank to issue equity in the entire company. Credit Suisse expects its common equity Tier 1 capital, a measure of its ability to absorb losses, to be 13.4% follo...
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