Banking News
- Shanghai News
Date: 8-Jan-2007 Sources: (Shenzhen Daily)
BANK of Communications (BoCom), the country's fifth-largest lender, aims to sell probably up to US$5.2 billion worth of shares in Shanghai in the first half of the year if shareholders approve its listing plan, industry sources said Friday.
The bank's board has already approved the plan to sell up to 4.5 billion domestic A shares, and shareholders will vote on the domestic initial public offering (IPO) proposal in Shanghai on Tuesday, the sources said.
Bank of Communications' Hong Kong listed shares closed at HK$8.97 Friday, valuing a similarly priced A-share listing as high as HK$40.4 billion (US$5.2 billion), although analysts usually expect some discount to the H shares.
'After the bank wins shareholders' approval, it will quickly apply to regulators to list,'said one banking source in Shanghai. 'The bank plans to launch the Shanghai IPO within the first half ... under the current market situation, it should be no problem.'
Bank of Communications has hired domestic securities houses CITIC Securities, Galaxy Securities and Haitong Securities to help underwrite the offering, said another source.
A spokeswoman for Bank of Communications said shareholder votes will be announced Tuesday but declined to comment further on its Shanghai listing plans.
HSBC Holdings holds nearly 20 percent of the Shanghai-based bank.
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