HONG KONG, March 14 — Commercial lender China Zheshang Bank Co Ltd today launched an initial public offering worth up to US$1.75 billion (RM7.158 billion) in Hong Kong, the city’s first sizeable new listing this year, as companies step up efforts to raise funds.
The bank, based in China’s eastern Zhejiang province, is offering 3.3 billion shares in an indicative range of HK$3.92 to HK$4.12 each (RM2.06 to RM2.17), Thomson Reuters publication IFR reported, citing a term sheet of the transaction.
The shares are equivalent to 19 per cent of Zheshang Bank’s enlarged share capital.
The IPO would be the largest in Hong Kong since a US$1.9 billion listing in December from China Energy Engineering Corp Ltd.
Hong Kong, which replaced New York in 2015 as the world’s biggest IPO market by the amount of funds raised, has seen just US$800 million of new listings so far this year.
But activity is expected to pick up in the coming weeks with other offerings including an up to US$1 billion deal from commercial lender Bank of Tianjin.
The IPO secured US$963 million in commitments from cornerstone investors including Zhejiang Seaport Group and Alipay (Hong Kong) Investment, which is part of Alibaba Group Holding Ltd’s Ant Financial Services Group.
The IPO is set to be priced on March 21, with a debut on the Hong Kong stock exchange slated for March 30.
Zheshang Bank did not immediately respond to a Reuters email requesting comment on the IPO terms. — Reuters
