China International Capital Corp. has applied to the Hong Kong stock exchange for a US$1 billion initial public offering that could take place as soon as September, The Wall Street Journal reported.
The Beijing-based investment bank, known for advising state-owned firms in their efforts to list in Hong Kong over the past decade, filed the application Tuesday, the report said.
The news came a day after China Railway Signal & Communication Corp., which makes signal systems used by the country’s rail network, began sounding out investors for an IPO worth up to US$2 billion in Hong Kong.
China Railway Signal’s listing would be the first since the recent stock market rout in the mainland and Hong Kong.
CICC’s IPO would give its shareholders, including private equity giants KKR & Co. and TPG Capital, the chance to exit their investments amid the turmoil in Chinese stocks.
Central Huijin Investment Ltd., the domestic investment arm of China’s sovereign wealth fund, is the largest shareholder in CICC, with a 43.35 percent stake.
Singapore sovereign wealth fund GIC Pte. Ltd. holds 16.35 percent.
TPG Capital owns 10.3 percent and KKR holds 10 percent, CICC’s 2014 annual report shows.
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