Banking News
- First two small Chinese banks to launch IPOs at home
Date: 5-Jul-2007 Sources: (Xinhua Online)
Nanjing and Ningbo city commercial banks on Wednesday released their prospectuses for initial public offerings on the domestic equity market.
They will be the first two small commercial banks to go public at home.
The Bank of Nanjing, partly-owned by BNP Paribas and based in the capital of east China's Jiangsu Province, is expected to sell up to 700 million yuan-denominated A shares, or 36.72 percent of its total shares.
The bank invited bids for its IPO on Wednesday, which will be completed on Friday. Off-line subscriptions tailored to strategic and institutional investors will proceed from July 11 to 12. On-line subscriptions for individual shareholders will be launched on July 12.
The Bank of Nanjing, with 58 branches in Jiangsu, reported gross assets worth 57.9 billion yuan (7.6 billion U.S. dollars) and net profits of 595 million yuan last year, as well as a non-performing loan ratio of 2.47 percent.
The Bank of Ningbo, which has Taiwan-based Bank of Overseas Chinese as one of its shareholders, will sell up to 450 million shares, or 18 percent of its total capitalization.
Price soliciting and promotion began on Wednesday and will be completed on Monday. Off-line subscriptions will proceed from July 11 to 12 and on-line subscriptions on July 12.
With 68 branches in eastern China's Zhejiang Province, the Bank of Ningbo had 56.6 billion yuan in total assets, with a non-performing loan ratio of 0.33 percent in 2006.
Three of China's four leading state-owned commercial banks and six of its 12 mid-sized commercial banks have been listed on the domestic market.
China has 114 small city commercial bank in operation.
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