Stocks News
- BoCom seeks US$2.6b in Shanghai listing
Date: 15-Jan-2007 Sources: (Shenzhen Daily)
BANK of Communications (BoCom), a partner of HSBC, aims to raise about US$2.6 billion through a local currency A-share listing in Shanghai in March, a senior banker familiar with the plan said Friday.
China's fifth-largest lender, which is already listed in Hong Kong, applied to regulators Thursday for initial public offering (IPO) approval and the stock watchdog was expected to hold a hearing to vote on the IPO soon, the banker said.
'In the Shanghai IPO in March, the bank aims to raise about 20 billion yuan (US$2.6 billion) because that is the suitable number which can help it expand business at the current pace,'the banker, who requested anonymity, said.
The bank is expected to launch a roadshow for the share sale around mid-February, he added.
The size of the planned offer is significantly smaller than some in the market had expected.
The bank, in which HSBC Holdings Plc. holds a 19.9 percent stake, won approval from its shareholders Tuesday to sell up to 4.5 billion A shares.
The bank has not announced details such as the exact number of shares it will issue, pricing or a time frame for the offer.
Based on the last closing price of its Hong Kong-listed shares at HK$8.31 (US$1.07) each, Bank of Communications could theoretically raise as much as US$4.8 billion if it decides to sell a total of 4.5 billion new shares, though analysts expect the A shares to be offered at some discount to the H shares.
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