Huatai Securities Co. Ltd. (601688.CN) could raise as much as US$5 billion from a Hong Kong listing, setting a new record in the Chinese brokerage sector, the Hong Kong Economic Journal reported Wednesday, citing sources.
The mainland firm will host a series of road shows next month before a planned listing in June, the report said.
The potential fund-raising, equivalent to about HK$39 billion, will surpass the HK$32 billion deal of GF Securities Co. Ltd. (01776.HK, 000776.CN) in Hong Kong recently.
Huatai Securities was initially planning a US$2 billion offering, but the positive stock market sentiment is believed to have led to the deal being upsized.
Media reports earlier this week said the company could seek up to US$3.5 billion in its Hong Kong IPO.
But sources told HKEJ that the plan has been scaled up further, taking the deal size to the range of US$4-5 billion.
The brokerage, however, may take a relatively conservative approach with regard to the pricing of the offer. Observers expect a deep discount in comparison to the firm’s Shanghai-listed shares.
The discount level would be similar to that of GF Securities, or over 50 percent, sources said.
Huatai Securities is said to be the fifth largest brokerage in China in terms of total asset value as of 2013.
In other deals, Wuxi-based Guolian Securities is reportedly planning to raise US$600 million from a Hong Kong listing in the second half of this year.
Translation by Vey Wong
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