Hengtai Said to Join Chinese Brokers’ IPO Rush as Stocks SurgeFox Hu
Hengtai Securities Co., a brokerage in northern China’s resource-rich Inner Mongolia region, plans to seek about $200 million in a Hong Kong initial public offering, people with knowledge of the matter said.
The company, headquartered in Hohhot city, plans to start the share sale as early as the second half of the year, according to the people. It has yet to seek regulatory approval for the deal, they said, asking not to be identified because the information is private.
Hengtai is joining a rush by Chinese securities firms to raise funds as the nation’s stock rally spurs demand for margin financing. Industry leader Citic Securities Co. and three other brokers have announced plans to raise more than $15 billion through Hong Kong share sales later this year, according to data compiled by Bloomberg.
Bocom International Holdings Co. and Haitong International Securities Group Ltd. are among banks working on Hengtai’s share sale, the people said. A Hong Kong-based external spokeswoman for Hengtai declined to comment.
Guolian Securities Co., based in eastern China, plans to seek as much as $600 million in a Hong Kong IPO this year, people with knowledge of the matter said Tuesday. GF Securities Co., a Guangzhou-based brokerage, has surged 31 percent in Hong Kong since completing a $4.1 billion share sale this month.
Hengtai booked 394.5 million yuan ($63.6 million) of profit in 2013, ranking 26th among the country’s brokers, according to the most recent data from the Securities Association of China. The company’s 2013 revenue of 1.1 billion yuan ranked 41st in China, the data show.