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Haitong Said to Hire Banks for $1.7 Billion Hong Kong Offer

Updated on

May 31 (Bloomberg) -- Haitong Securities Co., China’s third-largest brokerage by market value, hired at least six banks for a Hong Kong stock sale that may raise about $1.7 billion this year, four people with knowledge of the matter said.

Credit Suisse Group AG, Deutsche Bank AG, Haitong International Securities Group Ltd. and JPMorgan Chase & Co. will arrange the sale as so-called global coordinators, said the people, who asked not to be identified because the information is private. Citigroup Inc. and UBS AG will also help manage the offering, the people said.

The offering will account for as much as 13 percent of Haitong Securities’ capital following the sale, excluding over-allotment, the Shanghai-based company said in an April statement. That’s about 1.23 billion shares, and may allow Haitong to raise about 11 billion yuan ($1.7 billion) based on its May 30 closing price in Shanghai, according to data compiled by Bloomberg. The shares rose 1.7 percent to 9.06 yuan today.

Haitong will vie with Citic Securities Co. to become the first Chinese brokerage to be listed in both Hong Kong and Shanghai as China opens its capital markets. Citic Securities, the nation’s largest brokerage, said in March that up to 10 percent of the company may be sold in Hong Kong. That offering may raise about $1.9 billion, based on the firm’s market value.

Haitong Securities ranked fifth in underwriting share sales in China in 2010, data compiled by Bloomberg show. First-quarter profit at Haitong Securities rose 17 percent from a year earlier to 1.19 billion yuan, boosted by its underwriting and asset-management units, the company said in a statement on April 25.

Officials at Haitong Securities’ Shanghai offices weren’t immediately available to comment.

China Everbright Bank Co. may list in Hong Kong in July, according to an e-mailed statement from the lender today. The sale may raise about $7 billion, people with knowledge of the matter said last week.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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