Postal Sav­ings Bank said to seek ap­proval for $8b IPO in­Hong Kong

China Daily (USA) - - BUSINESS - By BLOOMBERG

Postal Sav­ings Bank of China Co, mov­ing closer to the world’s biggest share sale this year, will seek list­ing ap­proval this week for a Hong Kong ini­tial pub­lic of­fer­ing that could raise about $8 bil­lion, peo­ple with knowl­edge of the mat­ter said.

The Bei­jing-based bank plans to seek ap­proval from theHongKong bourse on Aug 25, ac­cord­ing to the peo­ple, who asked not to be iden­ti­fied as the in­for­ma­tion is pri­vate.

The bank, which has more out­lets than any listed lender, aims to list as early as Septem­ber, peo­ple with knowl­edge of the mat­ter said ear­lier.

Postal Sav­ings Bank, ubiq­ui­tous in small-town China, joins Bank of Tian­jin Co and China Zhe­shang Bank Co in sell­ing shares in Hong Kong to fund ex­pan­sion.

It re­ported an 11 per­cent in­crease in first-quar­ter profit as it pared pro­vi­sions for bad loans, ac­cord­ing to prelist­ing doc­u­ments filed with the Hong Kong ex­change.

A Hong Kong-based ex­ter­nal spokes­woman for Postal Sav­ings Bank com­ment.

The lender has also plunged into shadow-bank­ing ar­range­ments that could make investors ques­tion its rep­u­ta­tion as sleepy and safe.

Postal Sav­ings Bank’s prelist­ing doc­u­ments dis­closed 953 bil­lion yuan ($144 bil­lion) of in­ter­bank in­vest­ments de­clined to in “spe­cial pur­pose ve­hi­cles”, which can in­clude hold­ings of wealth man­age­ment prod­ucts, trust in­vest­ment plans, as­set man­age­ment plans and se­cu­ri­ties in­vest­ment funds. The hold­ings are up more than 500 per­cent since 2013.

Chi­nese fi­nan­cial com­pa­nies that listed in the city this year have gained an av­er­age 1.1 per­cent from their of­fer prices when ad­justed for deal size, ac­cord­ing to data com­piled by Bloomberg.

Hong Kong first-time share sales have raised $9.7 bil­lion in 2016, down from $20.1 bil­lion for the same pe­riod last year, the data showed.

Postal Sav­ings Bank’s dis­closed num­ber of in­ter­bank in­vest­ments in “spe­cial pur­pose ve­hi­cles”

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