China Bohai Bank Raises $1.8 Billion in Hong Kong Listing

The Tianjin-based firm has priced its shares at HK$4.80 each and is set to begin trading on July 15.

Anthony Russo
    Jul 10, 2020 7:00 AM  PT
China Bohai Bank Raises $1.8 Billion in Hong Kong Listing
author: Anthony Russo   

China Bohai Bank has raised $1.78 billion in a Hong Kong initial public offering, the largest in the city this year.

The Tianjin-based firm has priced its shares at HK$4.80 each, according to Reuters. The pricing was in the middle of the expected range of HK$4.75 to HK$4.98 per share.

Upon the IPO, the stake held by China Bohai's largest shareholder, TEDA Investment Holding, drops to 20.85% from 25%. Its second-largest shareholder, Standard Charted Bank, also reduces its stake to 16.67% from the previous 20%.

The joint sponsors are CCB International, ABC International, Haitong International Securities, and Citic Securities.

Established in December 2005, China Bohai was set up by seven shareholders including TEDA and Standard Chartered. Now, it has nine cornerstone investors led by Yichang HEC Health Pharmaceutical. According to Reuters, Yichang purchased $200 million worth of stock from China Bohai.

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, according to its prospectus.

It's been a busy month for Hong Kong IPOs and more are on the way. According to the South China Morning Post, over the next two weeks, 23 listings are scheduled to be completed on Hong Kong's main board and GEM board. To compare, less than 30 listings were completed in the entire second quarter.

In the coming weeks, some firms looking to make their debuts are autoimmune drug manufacturer JHBP (CY) Holdings, detergent maker Blue Moon Group, which applied to raise as much as $1 billion in June, and mobile game maker Archosaur Games. Archosaur's IPO is worth $278.7 million and it is set to begin trading on July 15.

China Bohai is set to make its public debut in Hong Kong on July 16 under the code "09668."


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