China International Capital Corp., the country’s first investment bank, picked ABC International Holdings Ltd. and CCB International (Holdings) Ltd. as joint sponsors for an initial public offering in Hong Kong, said people with knowledge of the matter.
The share sale will value Beijing-based CICC at more than $3 billion, said the people, who asked not to be identified because the information is private. CICC will act as the leading sponsor for the IPO, which it plans to start as early as in the fourth quarter, they said.
CICC was founded in 1995 and is run by Chief Executive Officer Levin Zhu, the son of former Chinese Premier Zhu Rongji. It ranks seventh among underwriters of initial share sales in Hong Kong this year, according to data compiled by Bloomberg.
The investment bank plans to submit an application to the Hong Kong stock exchange in the next few months, the people said. A Beijing-based spokeswoman for CICC declined to comment on details of the IPO.
Citic Securities Co. (6030), China’s largest brokerage by assets, has gained 46 percent in Hong Kong since a September 2011 first-time share sale that raised $1.8 billion, according to data compiled by Bloomberg. Haitong Securities Co., the country’s second-biggest brokerage, has advanced 20 percent since raising $1.8 billion in the city in April 2012, the data show.
Sponsors are the most senior advisers on IPOs in Hong Kong and typically get a greater share of underwriting fees.
Morgan Stanley helped create CICC in 1995 with China Construction Bank Corp. (939) as part of efforts to develop the country’s capital markets. The Wall Street firm sold its stake in 2010 to investors including KKR & Co., TPG Capital and Singaporean wealth fund GIC Pte.
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