Bank of Shanghai Co., which counts HSBC Holdings Plc (HSBA) among its shareholders, is planning to seek about $2 billion in an initial public offering in Hong Kong, two people with knowledge of the matter said.
The bank is preparing a listing application and may sell the shares in the third quarter of this year, the people said, asking not to be identified because the information is private. The lender may also sell shares in Shanghai at the same time, one person said.
Chinese banks from Beijing to Harbin are seeking to boost capital through share sales in Hong Kong, as domestic regulators maintain a freeze on stock offerings in Shanghai. The China Banking Regulatory Commission is enacting more stringent capital requirements as it seeks to strengthen lenders’ financial buffers.
Li Xiaohong, board secretary at the lender, wasn’t immediately available to comment on the IPO plan. Shanghai Securities News reported earlier today that the bank plans to raise about 30 billion yuan ($4.8 billion) in Hong Kong and Shanghai under a revised capital raising plan.
Bank of Shanghai, established in 1995, had 817 billion yuan of assets by the end of last year, according to its annual report. The lender, with more than 270 outlets, earned 7.5 billion yuan last year, an increase of 29 percent from a year earlier. Its capital adequacy ratio, a measure of financial strength, stood at 13.17 percent as of Dec. 31, the report shows.
HSBC owns 8 percent of Bank of Shanghai, making the U.K. lender its second-largest shareholder, according to Bank of Shanghai’s 2011 annual report. Its largest shareholder is state- owned Shanghai Alliance Investment Ltd.
JPMorgan Chase & Co., Morgan Stanley and UBS AG are among banks managing the IPO for Bank of Shanghai, the people said.
China Everbright Bank Co. (601818) may seek to raise more than $2 billion from a share sale in Hong Kong this year, people with knowledge of the matter said on Mar 13. The Beijing-based lender had planned to raise as much as $6 billion, before scaling it back to about $1.7 billion and then delaying the offering in August.
Harbin Bank Co. plans to seek as much as $1.5 billion in an initial public offering in Hong Kong and Shanghai by 2014, people with knowledge of the matter said last June.