Date
17 October 2017
Postal Savings Bank has many branches in rural parts of China. Photo: internet
Postal Savings Bank has many branches in rural parts of China. Photo: internet

Postal Savings Bank of China eyes US$25 bln IPO

Postal Savings Bank of China is in talks with potential investors about selling minority stakes before a possible initial public offering early next year, the Financial Times reported.

They include an affiliate of e-commerce giant Alibaba Group, US private equity firms and Asian sovereign wealth funds, it said.

Any stake sales or an IPO must be approved by the State Council and the Ministry of Finance, investors with knowledge of the state-owned bank’s plans told the newspaper.

An IPO could raise between US$10 billion and US$25 billion, one banker said. At the top end of the range, it could match Alibaba’s record US$25 billion offering last year.

The rise of shadow banks that pay much higher interest rates on deposits poses a competitive threat to the tightly regulated bank.

An injection of private capital and expertise from a financial investor could help the bank better compete with rivals, the report said.

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CG/FL

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