Galaxy Said to Pick Goldman Sachs, JPMorgan for IPO

China Galaxy Securities Co., a brokerage backed by China’s sovereign wealth fund, picked Goldman Sachs Group Inc. and JPMorgan Chase & Co. to help manage its initial public offering in Hong Kong, two people with knowledge of the matter said.

The Beijing-based firm may raise as much as $1.5 billion in the second quarter, said the people, asking not to be identified because the information is private. The two New York-based banks, along with Galaxy Securities’s Hong Kong unit, will act as sponsors and global coordinators for the offering, they said.

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.

Galaxy Securities has shortlisted more than 10 other banks to help arrange the sale and their roles are yet to be decided, the people said. The brokerage was forced to put on hold its Shanghai listing plan after Chinese regulators suspended IPO approvals, they said.

IFR reported earlier today that China Galaxy picked 16 banks for the offering. An external spokeswoman for Galaxy Securities declined to comment on the IPO plan.

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