Citigroup Inc.’s joint venture partner Orient Securities Co. Ltd. (600958.CN) plans to raise US$1 billion or more in an initial public offering in Hong Kong, the Wall Street Journal reports.
The Shanghai-based brokerage firm will be one of the first major Chinese brokers to list shares in Hong Kong since the meltdown in China’s stock market last summer, the newspaper said.
Citigroup, Goldman Sachs Group Inc. and Nomura Holdings Inc. are handling the share sale.
Orient Securities is one of at least three big Chinese securities firms looking to raise money in Hong Kong this year.
China Merchants Securities Co. Ltd. (600999.CN) and Everbright Securities Co. Ltd. (601788.CN) are also considering multibillion-dollar Hong Kong IPOs, the Journal said.
Several Chinese brokerages have yet to recover from last year’s stock market plunge in the mainland.
Guolian Securities Co. Ltd. (01456.HK) listed in June 2015 just as the Chinese stock market spiraled downward.
Its shares closed at HK$4.23 on Tuesday, down from its IPO price of HK$8.
Hengtai Securities Co. Ltd. (01476.HK) is down 10 percent since going public in October.
Citigroup formed Citi Orient, its partnership with Orient Securities, in 2012.
The joint venture is allowed to underwrite stocks and bonds, and advises on mergers and acquisitions. Citigroup owns one-third of the joint venture.
Orient Securities’ IPO won’t alter the Citigroup joint venture, which is a separate entity, the report said.
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