China Everbright Bank Board Approves Plan to List in Hong Kong

China Everbright Bank Co. (601818) has won board approval to sell as many as 12 billion shares in Hong Kong, moving closer to listing in the city after scrapping a stock sale last year.

The offer will take place within the next 18 months and comply with the period given to the company to sell shares, with the exact timing determined “according to the state of global and Chinese capital markets,” the lender said in a statement to the Shanghai stock exchange.

China Everbright Bank had planned to raise as much as $6 billion from a share sale in Hong Kong, before scaling that back to about $1.7 billion and then delaying the offering in August, citing sluggish capital markets and low valuations on banking shares.

The proceeds will be used to “bolster its core capital, raise the bank’s capital adequacy ratio and strengthen its ability to weather risks,” China Everbright Bank said in the statement. A Hong Kong listing would also help it improve profitability and support the “healthy expansion of its various businesses,” it said.

The lender said in August that it would restart listing preparations when there was a “relatively good window.”

To contact Bloomberg News staff for this story: Rachel Evans in Hong Kong at revans43@bloomberg.net; Jing Jin in Shanghai at jjin32@bloomberg.net; Liza Lin in Shanghai at llin15@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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