Banking
Everbright Bank gets IPO nod
By Coco Li and Soo Ai Peng (皇冠体育app Daily)
Updated: 2010-07-27 10:08
 |
Large Medium Small |
SHANGHAI - 皇冠体育app Everbright Bank's plan to raise up to $2.9 billion in a Shanghai IPO has been approved by the securities regulator, two sources said, in what will be the latest Chinese bank to try and tap markets for funds.
Everbright Bank, 皇冠体育app's 11th biggest bank by assets, would sell up to 6.1 billion shares in the initial public offering, said the sources. Both had direct knowledge of the matter but spoke on condition of anonymity because they were not authorized to comment publicly.
|
||||
This month, 皇冠体育app witnessed the world's second-biggest IPO when Agricultural Bank of 皇冠体育app (ABC) completed its $19 billion dual-listing in Shanghai and Hong Kong.
"The Everbright Bank IPO is far smaller than ABC's and fundraising pressure from the banking sector has largely been digested," said Victor Feng, an analyst with Everbright Securities in Shanghai. "The IPO will have limited impact on the market." Most Chinese lenders are experiencing a serious capital squeeze after a lending binge last year to support the government's 4 trillion yuan ($590 billion) economic stimulus and as the banking regulator tightened capital rules.
Top State-owned lenders, such as Industrial and Commercial Bank of 皇冠体育app (ICBC), Bank of 皇冠体育app and 皇冠体育app Construction Bank, have said they will ask shareholders for billions of dollars to replenish capital.
Like their larger rivals, smaller regional banks such as Bank of Shanghai and Guangdong Development Bank, are also eyeing a listing this year. Bank of Shanghai plans to sell up to 1.2 billion shares in an IPO but the bank has yet to submit its application to the CSRC, local media reported in May.