Bank of Qingdao priced its Hong Kong initial public offering at HK$4.75 (61 US cents) a share, the bottom end of the expected price range, The Wall Street Journal reported, citing unnamed sources.
The largest city commercial lender in Shandong province became the first of several Chinese commercial banks expected to list in Hong Kong this year, but the pricing of the deal indicates investors are worried about rising nonperforming loans.
Bank of Qingdao sold 990 million shares to raise US$607 million.
The bank’s largest shareholder is Italian bank Intesa Sanpaolo SpA, which has a 20 percent stake.
Bank of Qingdao’s nonperforming-loan ratio rose to 1.27 percent in the third quarter from 1.19 percent at the end of June, its website said.
The bank had locked up about 72 percent of the float, or US$435 million, from six cornerstone investors before launching the IPO.
The shares will start trading Dec. 3.
– Contact us at firstname.lastname@example.org