Bank of Tianjin, Investors Seek Up to $1.23 Billion From IPO

  • Seven cornerstone investors agree to buy $560 million of stock
  • China State Shipbuilding, Tewoo commit to purchase IPO shares

Bank of Tianjin Co., a commercial lender based in the northern Chinese port city, and its owners are seeking as much as $1.23 billion from a Hong Kong initial public offering.

The bank and some existing investors are offering a combined 995.5 million shares at HK$7.37 to HK$9.58 apiece, according to a Hong Kong exchange filing Tuesday. Seven cornerstone investors, including government-owned China State Shipbuilding Corp. and Tianjin-based commodities trader Tewoo Group Co., agreed to buy about $560 million of stock in the offering.

Bank of Tianjin and fellow lender China Zheshang Bank Co. are the first companies attempting major Hong Kong IPOs this year, after the Hang Seng China Enterprises Index rebounded 16 percent from its low last month. The offerings will add to the $861 million raised by first-time share sales in the city this year, the slowest start since 2011, data compiled by Bloomberg show.

China State Shipbuilding agreed to buy $270 million of stock as a cornerstone investor, while Tewoo and Tianjin Real Estate Group Co. will each invest $50 million, according to the filing. Sinotak Ltd., an investment vehicle owned by a wealthy man named Zhang Wei, committed $100 million.  

Shandong Tianye Real Estate Development Group Co., Tianjin Teda Investment Holding Co. and the parent of China Huiyuan Juice Group Ltd. will purchase $30 million of shares apiece. Tianjin Bank plans to price the offering March 18 and start trading March 30, the filing shows. 

ABC International Holdings Ltd., BOC International Holdings Ltd. and CCB International Holdings Ltd. are joint sponsors of Bank of Tianjin’s listing.

The lender had 545.7 billion yuan ($84 billion) of total assets on Sept. 30, compared with 478.9 billion yuan at the end of 2014, according to a pre-listing document posted to the stock exchange earlier this month.

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