A brokerage firm controlled by China's sovereign wealth fund, China Galaxy Securities Inc, has started to determine the demand for an initial share sale amounting to US$1.5 billion. The share sale is to be held in the HK stock exchange according to two individuals with knowledge of the transaction.
The firm is based out of Beijing is planning to commence trading starting next month. Galaxy Securities was established in January 2007 and is controlled by a unit of China Investment Corp, namely Central Huijin Investment Ltd.
The brokerage firm has chosen Goldman Sachs Group Inc and JP Morgan Chase as the sale managers together with the firm's Hong Kong unit.
Another brokerage firm, Haitong Securities Co had raised HK$14.4 billion or US$1.9 billion in its Hong Kong share sale last year. From its offer, the firm's share values have increased by 1.7% from its original IPO price.
As for Galaxy Securities, a spokeswoman has declined to make a comment on the pending IPO plan.
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