Credit Suisse ditches Swiss IPO in favour of $4-billion cash call

ZURICH: Credit Suisse Group AG Chief Executive Officer Tidjane Thiam bowed to investor pressure by abandoning the sale of the bank’s biggest profit generator and said it will instead boost capital through a rights offer.

The bank will raise 4 billion francs ($4.03 billion) from the share sale after dropping plans for the partial initial public offering of its Swiss Universal Bank, ending weeks of speculation on its funding plan, according to a statement on Wednesday It also posted first-quarter profit of 596 million francs, beating the 336 million-franc average of seven analyst estimates compiled by Bloomberg.