Shengjing Bank Said to Plan Raising $1.3 Billion in Initial Sale

Shengjing Bank Co., the biggest city commercial lender in northeastern China, and its investors plan to sell shares below the midpoint of a marketed range to raise about $1.3 billion from a Hong Kong initial public offering, said people with knowledge of the matter.

The company, based in Shenyang city, and its shareholders plan to sell about 1.38 billion shares at HK$7.56 each, said the people, who asked not to be identifed because the information is private. New shares account for 90.9 percent of the offering, according to Shengjing Bank’s IPO prospectus.

The lender aims to start trading on Dec. 29, the document shows. Five cornerstone investors, including billionaire Cheng Yu-tung’s Chow Tai Fook Nominee Ltd., agreed to buy a combined $700 million of stock as part of the IPO.

IFR reported the pricing earlier today, citing unidentified people. A Hong Kong-based external spokeswoman for Shengjing Bank declined to comment.

Cornerstone investors typically agree to hold their stock for at least six months in return for guaranteed allocations in initial share sales.

Shengjing Bank had total assets of 449.1 billion yuan ($72.5 billion) at the end of June, according to the prospectus. Profit rose 16 percent to 2.51 billion yuan in the first half from a year earlier.

The lender’s capital adequacy ratio was 11.6 percent and its loan-to-deposit ratio 49.9 percent at the end of June, the document shows.

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