Galaxy Securities Said to Boost IPO Size as Chinese Stocks GainFox Hu
China Galaxy Securities Co. may seek as much as $1.9 billion in an initial public offering in Hong Kong and Shanghai, almost double an earlier target, after Chinese stocks rallied from a four-year low, said two people with knowledge of the matter.
The Beijing-based brokerage has submitted applications to regulators in Hong Kong and China and may start the IPO in the second quarter, said the people, who asked not to be identified because the plan is private. Central Huijin Investment Ltd., a unit of China Investment Corp., owned 79 percent of Galaxy Securities at the end of 2011, according to Huijin’s website.
China’s benchmark Shanghai Composite Index has rebounded 17 percent from an almost four-year low on Dec. 3 after policy makers pledged greater investment in urban development and faster economic reform. Galaxy Securities had planned to seek about $1 billion in the offering, people with knowledge of the matter said in October.
21st Century Business Herald reported the latest fundraising target on Jan. 4. An external spokeswoman for Galaxy Securities declined to comment on the IPO plan.
Companies raised $14.6 billion through IPOs last year in China, down 64 percent from 2011, data compiled by Bloomberg show. Hong Kong initial sales slumped by a similar magnitude, to $7.9 billion, the data show.