Bank may cut HK IPO by half
Source: Bloomberg News |
August 5, 2011, Friday
|
Print Edition
Print Edition
CHINA Everbright Bank Co may cut the size of its Hong Kong share sale in half to about US$3 billion as investors shun bank stocks, two inside sources said yesterday.
The Beijing-based lender aims to start trading in the city on August 18, said the people, who declined to be identified because they're not authorized to discuss the deal. Everbright Bank is already listed in Shanghai, where its shares have fallen 19 percent this year, valuing the company at 129 billion yuan (US$20 billion).
The bank had aimed to raise about US$6 billion from the sale of 10.5 billion shares, according to a term sheet sent to investors on June 14. The lender delayed the offering in June as shares of Chinese banks declined on concern that loans made to local governments may turn sour.
The company may sell shares at as much as a 5 percent discount to the average trading price in Shanghai in the 10 days leading up to the offering, people with knowledge of the matter said last month. The top end of the price range would represent a 10 percent premium to the 10-day average, they said.
The size and timing of the sale is pending a final decision by Everbright Bank's management, the people said. Shen Chunhua, a vice director of the bank's board secretary office in Beijing, was not available to comment on the sale. The Standard newspaper reported on Tuesday that the lender planned to cut the size of its offering.
The Beijing-based lender aims to start trading in the city on August 18, said the people, who declined to be identified because they're not authorized to discuss the deal. Everbright Bank is already listed in Shanghai, where its shares have fallen 19 percent this year, valuing the company at 129 billion yuan (US$20 billion).
The bank had aimed to raise about US$6 billion from the sale of 10.5 billion shares, according to a term sheet sent to investors on June 14. The lender delayed the offering in June as shares of Chinese banks declined on concern that loans made to local governments may turn sour.
The company may sell shares at as much as a 5 percent discount to the average trading price in Shanghai in the 10 days leading up to the offering, people with knowledge of the matter said last month. The top end of the price range would represent a 10 percent premium to the 10-day average, they said.
The size and timing of the sale is pending a final decision by Everbright Bank's management, the people said. Shen Chunhua, a vice director of the bank's board secretary office in Beijing, was not available to comment on the sale. The Standard newspaper reported on Tuesday that the lender planned to cut the size of its offering.
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