Banking News
- CITIC Bank plans April 27 dual listing
Date: 30-Mar-2007 Sources: (Shenzhen Daily)
CHINA CITIC Bank Corp., the nation's seventh-largest lender, aims to raise up to US$5 billion in a Shanghai and Hong Kong dual listing April 27, the South China Morning Post said Thursday.
The bank plans to sell a total of 7.25 billion shares, or 18.9 percent of its enlarged share capital in the float, the Hong Kong-based paper reported.
The bank won approval for the Hong Kong listing Wednesday and said in its draft initial public offering (IPO) prospectus, which will be reviewed by the securities regulator next Monday, that it expects to issue 2.3 billion A shares in Shanghai.
Prices for the float were not specified but previous reports said they would be confirmed 8 to 10 days before the sale.
At the end of 2006, the bank's capital adequacy ratio, a basic measure of financial health, stood at 9.4 percent, up from 8.1 percent in 2005.
It has also courted strategic investors, selling a 16.4 percent stake to CITIC International Financial Holdings, CITIC Group's Hong Kong-based flagship company, and a 4.83 percent share to BBVA, Spain's second-largest bank.
About 20.7 percent of the new shares would be offered to the two strategic investors so that their stakes would not be diluted, the newspaper said, citing a sales document sent to fund managers.
The bank plans to pay 25 to 35 percent of its net profit as dividends from this year to 2009. It expects earnings of at least 5.7 billion yuan in 2007.
Sponsor Results:
