Shengjing Bank Co., a city commercial bank based in China’s northeastern Liaoning province, is raising up to US$1.4 billion in an initial public offering in Hong Kong.
The lender is selling 1.38 billion shares in an indicative price range of HK$7.43 to HK$7.81, the Wall Street Journal reported Friday, citing a term sheet.
It will mark the second Chinese bank listing so far this year in Hong Kong, after Harbin Bank’s US$1.1 billion IPO in March, the paper noted.
Shengjing Bank has already secured US$700 million of orders from cornerstone investors, a list that includes Bondic International Holdings and Chow Tai Fook Nominee Ltd., an entity controlled by Hong Kong billionaire Cheng Yu-Tung, according to the report.
Bondic is said to be buying US$200 million worth of shares, while Chow Tai Fook Nominee is investing US$100 million.
Shengjing Bank posted a net profit 2.5 billion yuan (US$405 million) in the first half this year, up 16 percent over the corresponding period in 2013, according to the report.
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