CICC may raise $1b from stock of­fer­ing in HK

China Daily (Canada) - - FRONT PAGE - By BLOOMBERG

China In­ter­na­tional Cap­i­tal Corp, the coun­try’s first Sino-for­eign in­vest­ment bank, plans to raise about $1 bil­lion from an ini­tial public of­fer­ing in Hong Kong this year, peo­ple with knowl­edge of the mat­ter said.

The Bei­jing-based com­pany aims to start the share sale in the sec­ond half of this year, said the peo­ple, who asked not to be iden­ti­fied as the in­for­ma­tion is pri­vate. It has yet to seek ap­proval from the city’s stock ex­change, they said.

The once-dom­i­nant in­vest­ment bank, which has lost ground to ri­vals, is push­ing ahead. The firm has hired Hopu In­vest­ment Man­age­ment Co part­ner BiMingjian as its chief ex­ec­u­tive of­fi­cer in a move that should help smooth the list­ing plan, a per­son with knowl­edge of the mat­ter said.

“With strength on both IPOs and re­search, CICC is set to ben­e­fit from China’s stock mar­ket rally,” Ed­mond Law, a Hong Kong-based an­a­lyst at UOB-Kay Hian Hold­ings Ltd, said. “Strong earn­ings by Chi­nese bro­ker­ages and­mar­ket re­forms will also help such sell shares.”

CICC will act as the lead spon­sor for its IPO, the peo­ple said. A Bei­jing-based spokes­woman for the bank de­clined to com­ment.

Mor­gan Stan­ley helped cre­ate CICC in 1995 with­China Con­struc­tion Bank Corp as part of the ef­forts to de­velop the coun­try’s cap­i­tal mar­kets. The Wall Street firm sold its 34.3 per­cent stake to in­vestors in­clud­ing KKR & Co, TPG Cap­i­tal and GIC Pte in 2010 for about $1 bil­lion.

CICC ranked ninth among un­der­writ­ers of ini­tial share sales in Hong Kong last year, with a 4.2 per­cent mar­ket share, ac­cord­ing to data com­piled by Bloomberg. It ranked sec­ond among ar­rangers of do­mes­tic IPOs this year, up from 10th place in 2014.

CITIC Se­cu­ri­ties Co has gained 94 per­cent in Hong Kong since its first-time share sale in Septem­ber 2011.

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