Bank of Jinzhou Starts $943 Million Hong Kong Initial Offeringby
City commercial banks raise funds to expand beyond home bases
Lenders in Qingdao, Zhengzhou also aim to list by year-end
Bank of Jinzhou Co., a lender in northeastern China, and an existing shareholder are seeking as much as $943 million from a Hong Kong initial public offering.
Bank of Jinzhou, based in Liaoning province, and the investor are offering 1.32 billion shares at HK$4.64 to HK$5.54 apiece, according to terms for the deal obtained by Bloomberg. New shares account for 90.9 percent of the offering, the terms show.
China’s city commercial banks are seeking to replenish capital to expand out of their home bases and compete with larger, better-funded rivals. Bank of Qingdao Co. is taking orders for a $666 million IPO, while Bank of Zhengzhou Co. plans to seek more than $500 million from a Hong Kong share sale next month, people with knowledge of the matter said earlier.
The listing candidates follow Harbin Bank Co. and Shengjing Bank Co., which completed Hong Kong IPOs last year that raised $2.6 billion, according to data compiled by Bloomberg. Bank of Jinzhou plans to set a final price by Nov. 30 and start trading Dec. 7, the terms show.
Hong Kong Tian Yuan Manganese International Trade Co. plans to buy 200 million shares in Bank of Jinzhou’s offering as a cornerstone investor, the terms show. Cornerstone investors typically agree to hold on to their stock for six months in return for early and guaranteed allocation.
Bank of Jinzhou, which was founded in 1997, had 178 outlets at the end of June including 20 located outside its home province, according to a pre-listing filing. CCB International Holdings Ltd. is the sole sponsor for the listing. Barclays Plc is a joint global coordinator of the IPO, the terms show.