Bank of Tianjin IPO Said to Draw China State Shipbuilding, Tewooby
Cornerstone investors to buy about $560 million of IPO shares
Commercial lender to start taking investor orders Tuesday
Bank of Tianjin Co., a commercial lender based in the northern Chinese port city, plans to sell about $560 million of stock to seven cornerstone investors in its Hong Kong initial public offering, people with knowledge of the matter said.
China State Shipbuilding Corp., a maker of warships and bulk carriers, agreed to invest $270 million, while Tianjin-based commodities trader Tewoo Group Co. will buy $50 million of stock, according to the people. The Chinese bank plans to start taking orders on Tuesday for the IPO, which will seek to raise at least $950 million, the people said, asking not to be identified as the information is private.
Bank of Tianjin and fellow lender China Zheshang Bank Co. are the first companies attempting major Hong Kong IPOs this year, after the Hang Seng China Enterprises Index rebounded 16 percent from its low last month. The offerings will add to the $861 million raised by first-time share sales in the city this year, the slowest start since 2011, data compiled by Bloomberg show.
Sinotak plans to purchase $100 million of Bank of Tianjin’s IPO shares, while an arm of China Huiyuan Juice Group Ltd. has committed $30 million, the people said.
ABC International Holdings Ltd., BOC International Holdings Ltd. and CCB International Holdings Ltd. are joint sponsors of Bank of Tianjin’s listing, according to a March 13 pre-listing filing with the Hong Kong stock exchange.
Zheshang Bank began taking orders Monday for its Hong Kong IPO, which is seeking to raise as much as $1.75 billion, according to terms for the deal obtained by Bloomberg. Five cornerstone investors, including brokerage Shenwan Hongyuan Group Co. and Alibaba Group Ltd.’s finance affiliate, agreed to buy as much as $1.01 billion of Zheshang Bank stock, the terms show.
A Hong Kong-based representative for Bank of Tianjin declined to comment. China State Shipbuilding didn’t immediately respond to faxed questions, and a call to its news office went unanswered.
An official who answered the phone at Tewoo Group’s news department declined to comment, while a representative for Huiyuan didn’t immediately respond to an e-mail seeking comment. Contact details for Sinotak couldn’t immediately be located.