13 December 2019

Huishang Bank IPO raises US$1.19 bln, WSJ says

Huishang Bank Corp. raised US$1.19 billion in an initial public offering in Hong Kong after pricing its shares near the low end of an indicative range, amid growing concerns among investors about rising bad loans in mainland China, the Wall Street Journal reported on Wednesday. Meanwhile, shares of another small Chinese lender, Bank of Chongqing Co. Ltd. (01963.HK), dropped below their IPO price on their trading debut on the Hong Kong stock exchange. Last month, Bank of Chongqing raised US$546 million in the first IPO by a mainland bank in three years, according to the newspaper. Huishang sold 2.61 billion shares at HK$3.53 (46 US cents) each, it said, citing people familiar with the situation. The shares were offered in the range of HK$3.47 to HK$3.88. The offering price is 0.94 times forecast book value this year, the report said.

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