China Bohai Bank has starting marketing as much as $1.85 billion in stock for a Hong Kong IPO, which would mark the largest listing in the city so far this year, according to the Nikkei Asian Review.
The Tianjin-based firm is “selling” 2.88 billion shares in the range of HK$4.75 to HK$4.98 each. Under the deal, China Bohai’s largest shareholder TEDA Investment Holding’s stake would slip from 25% to between 20.34% and 20.85%-- how much will depend on if the bank uses its option to upsize the offering. Meanwhile, another big shareholder Standard Charted Bank would see its equity ownership fall from 20% to in the range of 16.26% and 16.67%.
China Bohai intends to use the proceeds to enhance its capital base. ABC International, CCB International, CLSA, and Haitong International are the sponsors on the deal.
The move follows a prominent time for listings in the city, as more than 30 companies have filed for IPOs with the Stock Exchange of Hong Exchange just this month. Total equity raisings could hit $32.26 billion in Hong Kong this year, according to a KPMG projection earlier this week.
Established in December 2005, China Bohai was set up by seven shareholders including TEDA and Standard Charted, according to the company. It now has nine cornerstone investors, led by Yichang HEC Health Pharmaceutical, to take up $520 million worth of stock, according to its filing.
In 2019, China Bohai’s net profit soared 15.7% year-over-year to 8.19 billion yuan. As of December, it maintained assets of 1.12 trillion yuan.
China Bohai will look to price its IPO on July 9 and begin trading on the HKEX on July 16.