China’s Biggest IPO Since 2010 Will Fuel Guotai’s Margin Lending

Guotai Junan Securities Co., China’s largest brokerage by revenue, is capitalizing on a world-beating stock rally by seeking $4.8 billion in the nation’s biggest domestic initial share sale since 2010.

Guotai Junan will sell shares at 19.71 yuan each, the firm told Shanghai’s stock exchange late Tuesday. The IPO will give it a market capitalization of 150 billion yuan ($24 billion), ranking it ninth among Chinese securities firms by that measure with a price-to-earnings ratio that’s about half the industry average.