Shares in ANZ Banking Group Ltd have slumped on expectations that investors could book profits from the $AU2.2 billion (NZ$2.72 billion) share purchase plan that was completed on Thursday.
ANZ also reiterated its earlier guidance of a 20% hike in second half 2009 bad debt provisions that would bring the total for its full year to just over $AU3 billion.
ANZ said in a statement that it would issue the shares at $AU14.40 each after accepting all applications for its share purchase plan (SPP) that closed on July 2.
ANZ closed down 45 cents, or 2.76%, at $AU15.85 a share.
Macquarie Private Wealth director Martin Lakos said for current investors there was an instant profit of about $AU1.45 a share from the SPP.
"I guess there is a perspective out there that retail (investors) might look to sell-out of some of that ANZ," he said.
ANZ accepted all applications from around 40% of its retail shareholders who showed interest in the SPP, and will allot the shares on July 13 allowing them to start trading the next day.
The bank also said that negotiations with Royal Bank of Scotland (RBS) over the purchase of some of its Asia-based assets were ongoing and incomplete.
The expected hike in bad debt provisions from its first half provision of $AU1.435 will bring ANZ's full year provision to over $AU3.1 billion.
A raft of corporate sector defaults means ANZ now carries $AU3.8 billion in troubled corporate loan exposures - 35% of the banking sector's corporate loan exposures, says CLSA Asia Pacific Markets banking analyst Brian Johnson.
"ANZ is still generating markedly higher individually assessed loan-loss charges than its peers," Johnson said in a recent report to clients.
The bank's exposures to failed margin lenders Opes Prime, Tricom and PrimeBroker as well as massive exposures to the flawed business models of Centro, Timbercorp and Great Southern has seen the bank rack up a total exposure of $3.831 billion to the corporate sector.
"ANZ's credit underwriting standards were remarkably lower than its peers and the `seasoning' of its retail and SME (small to medium enterprise) banking market share growth of recent years suggests ANZ may deliver higher-than-peer loan losses in the medium term," Johnson said.
ANZ also said it had earmarked the SPP funds and another $2.5 billion raised through an institutional share placement on May 27 for acquisitions.
RBS spokeswoman Carolyn McAdam told AAP on July 3 that RBS had no deadline for the completion of the negotiations for the asset sales and declined to be drawn on the status of the frontrunners, believed to be ANZ and Standard Chartered Bank.
RBS is selling its retail and commercial operations in Hong Kong, Singapore, China, India, Malaysia, Indonesia, Taiwan, the United Arab Emirates, Kazakhstan and Pakistan.
RBS's wholesale operations in Taiwan, Kazakhstan and Pakistan are also up for sale.
Johnson said the parties would face hurdles regarding their preferred assets.
"What RBS are selling and what people want to buy might be two different things," he told AAP.
"It depends on where the bank licences in China reside - if you're going to buy them do you have to take some of the businesses that you don't actually want?"
McAdam said RBS' Chinese banking licences pertain to Beijing, Shanghai and a number of regional licences, all held by a RBS subsidiary.
