BANK OF NEW ZEALAND.

New Zealand Herald, Volume LX, Issue 18519, 2 October 1923, Page 6

BANK OF NEW ZEALAND.

INCREASE OF CAPITAL.

THE NEW SHARE ISSUE.

FAVOURABLE RECEPTION,

Applications for the new shares issued by the ißank; of New Zealand closed yesterday, and it . is thought that, from the experience in Auckland, the whole issue will have been taken up. r \ In Juno last the directors of the bank decided to issue at par £1,125,000: of new capital, to make the capital commensurate with the deposits and the .-: general business of the bank, and to provide for rendering the maximum support to, the bank's borrowing customers. In accordance with the .provisions of the Bank of New Zealand; Act, 1920, one-third of i the amount, • £375,000, was set aside as "BV, preference shares, and taken up by the Government, and .the remaining £750,000 offered to'ordinary shareholders in • the proportion of ; one new share to - every three shares on the - register: in ; their names on' July. 27 last. Holders >of ordinary shares , were thus entitled to purchase- the whole' \ or any of the, shares so offered on or before October 1. ■•• i\ Rights on i these now, shares have been selling : freely at from £1 8s to i£l , lis, and latterly cum rights .;■; have been done at 60s and 61s, while yesterday ex rights were quoted alt, • 52s 6d.. Vln -view of ; i the response locally it is/ felt ' that the ■; new issue is being taken up well. -;i The new shares will in the meantime. not be worth as much as the old issue, as' they do - not participate in. the - half-yearly , dividend due at September 30; last, and until ; > this dividend -■ has all been ; paid outfit* is, expected that the > new issue will .figure about Is •:■ 4d below the old }issue. The new 'issue will 'be quoted ; on the Auck-; land sharemaker : today,' *' ' '.