China Everbright Bank Co. (601818), the lending unit of state-controlled China Everbright Group, may raise about $1.5 billion in a Hong Kong share sale, becoming the third Chinese lender to list stock in the city this quarter, according to calculations based on a sale document.
Everbright Bank plans to offer 3.3 billion shares, the Beijing-based lender said in a filing to Japan’s Finance Ministry today. Based on today’s closing price of 2.84 yuan for its Shanghai-traded shares, the sale could raise about 9.37 billion yuan ($1.5 billion).
China’s 11th largest lender by market value won approval from its board in February 2011 to sell as many as 12 billion shares overseas. The company had planned to raise as much as $6 billion from the offering, before scaling the sale back to about $1.7 billion and then delaying it in August 2012, citing sluggish capital markets and low valuations of bank shares.
Everbright Bank’s capital adequacy ratio stood at 9.65 percent as of Sept. 30. The China Banking Regulatory Commission’s rules require banks such as Everbright, which isn’t classified as systemically important, to have minimum capital buffers of 10.5 percent before the end of 2018.
Bank of Chongqing Co., a lender based in China’s most populous city, raised $548 million in a Hong Kong IPO in October. Huishang Bank Corp. raised $1.2 billion and started trading in the city on Nov. 12.
Shares of Everbright Bank have dropped 6.9 percent in Shanghai this year, compared with a 3 percent decline in the benchmark Shanghai Composite Index.
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