Postal Savings Bank’s IPO to raise $25 billion
Postal Savings Bank of China Co aims to raise up to $25 billion with an initial public offering next year, people with knowledge of the matter said.
The bank, which has the most outlets among Chinese lenders, is 100 percent owned by China Post Group Corp, the stateowned postal service provider. PSBC is bringing in outside investors as the nation aims to diversify the equity ownership of SOEs as part of the mixedownership model, thus improving the returns on state capital. PSBC also wants to increase its capital to meet the demands of development.
The bank had more than 5.57 trillion yuan ($891 billion) of assets at the end of 2013. Savings from individuals exceeded 5 trillion yuan on Dec 16, 2014.
The Financial Times reported that the bank is in talks with potential investors to sell minority stakes before its IPO, including Zhejiang Ant Small & Micro Financial Services Group Co, an affiliate of Alibaba Group Holding Ltd. (Photo 4)