China Huarong Asset Management Co., the nation’s biggest bad-loan manager, received Hong Kong stock exchange approval for an initial public offering, people with knowledge of the matter said.
The Beijing-based company plans to seek about $2 billion from the share sale, said the people, who asked not to be identified because the information is private. It may start gauging demand for the offering in early September, the people said.
Huarong, one of four companies set up by the government in 1999 to clean up state-owned banks, is seeking to expand as bad loans rise in China. China Cinda Asset Management Co., the first of Huarong’s peers to become publicly traded, has lost 21 percent since its $2.8 billion Hong Kong IPO in December 2013.
The Hong Kong Economic Times reported the approval earlier Friday, citing unidentified people. A Hong Kong-based external spokeswoman for Huarong declined to comment.
Warburg Pincus LLC led a group of investors that bought 21 percent of Huarong for 14.5 billion yuan ($2.3 billion), people with knowledge of the deal said in September last year.