Date
20 October 2017
Last year CICC was ranked ninth among IPO underwiters with a 4.2 percent market share. This year, it is the No. 2 arranger of domestic IPOs. Photo: Bloomberg
Last year CICC was ranked ninth among IPO underwiters with a 4.2 percent market share. This year, it is the No. 2 arranger of domestic IPOs. Photo: Bloomberg

CICC eyes US$1 bln Hong Kong IPO

China International Capital Corp. (CICC) is seeking US$1 billion in a planned initial public offering in Hong Kong this year.

The country’s first Sino-foreign investment bank plans to start the share sale in the second half, Bloomberg reported Thursday, citing unnamed sources with knowledge of the matter.

It has yet to seek approval from the Hong Kong stock exchange, the report said.

The IPO was pushed back after its long-time chief executive, Levin Zhu, left in October.

CICC hired Hopu Investment Management Co. partner Bi Mingjian as Zhu’s replacement, a move that should help smooth the listing plan, according to a source.

“With strength on both IPOs and research, CICC is set to benefit from China’s stock market rally,” Edmond Law, a Hong Kong-based analyst at UOB-Kay Hian Holdings Ltd., said.

“Strong earnings by Chinese brokerages and market reform will also help such companies sell shares.”

CICC will act as the lead sponsor for the IPO. A Beijing-based spokeswoman for the investment bank declined to comment.

Morgan Stanley helped create Beijng-based CICC in 1995 with China Construction Bank Corp. as part of efforts to develop the country’s capital market.

The Wall Street firm sold its 34.3 percent stake to investors including KKR & Co., TPG Capital and GIC Pte. in 2010 for about US$1 billion.

CICC ranked ninth among IPO underwriters last year with a 4.2 percent market share, according to Bloomberg.

It is No. 2 among arrangers of domestic IPOs this year, up from 10th place in 2014.

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CG/RA

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