The Bank of Shanghai is planning to seek US$2 billion in an IPO in Hong Kong. This was confirmed by two individuals with knowledge of the transaction who spoke on condition of anonymity.
Amongst the shareholders of Bank of Shanghai is HSBC Holdings Plc and is now in the midst of completing a listing application to sell the shares by the third quarter of this year. There is also a plan to include share sales in the Shanghai bourse.
Banks based from Beijing to Harbin are in high demand for capital investments through share sales in Hong Kong's index. This is because domestic regulators still maintain a freeze on stock offerings in Shanghai. Only after the China Banking Regulatory Commission enacts more stringent capitalization requirements would lender's financial buffers be strengthened for future trading.
The plan for the IPO listing is to raise 30 billion yuan or US$4.8 billion in both Hong Kong and Shanghai under a plan. Li Xiaohong, the board secretary of the financial institution, was not available for comment on the IPO plan.
Join the Conversation