China International Capital Corp., the first Sino-foreign investment bank, 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 $1 billion in the share sale, according to the people. It may start the offering in the next few weeks, they said, asking not to be identified as the information is private.
The once-dominant investment bank, which has lost ground to rivals, is pushing ahead with the offering after a $5 trillion stock rout that threatens to crimp earnings in the nation’s securities industry. A Bloomberg Intelligence index of Chinese brokerages trading in Hong Kong has fallen 27 percent this year.
CICC ranks eighth among underwriters of stock sales in Hong Kong this year and 11th for offerings in China, data compiled by Bloomberg show. The company’s revenue and other income surged 51 percent to 6.16 billion yuan ($968 million) last year, according to a July 22 pre-IPO filing.
Fees and commission income accounted for about 67 percent of sales last year, while investment income contributed about 25 percent, the document shows. CICC and ABC International Holdings Ltd. are joint sponsors of the IPO.
Morgan Stanley helped create CICC in 1995 with China Construction Bank Corp. as part of efforts to develop the country’s capital markets. The Wall Street firm sold its 34.3 percent stake to investors including KKR & Co., TPG Capital and GIC Pte in 2010 for about $1 billion.
A Hong Kong-based external spokesman for CICC declined to comment. IFR reported the approval earlier Friday, citing unidentified people.