PSBC launches US$8.1 billion IPO
POSTAL Savings Bank of China (PSBC) has launched an initial public offering in Hong Kong worth US$8.1 billion – the world’s biggest flotation this year.
The Beijing-based lender is offering 12.1 billion shares at HK$4.68 to HK$5.18 each, according to Bloomberg, which said cornerstone investors are expected to buy the majority of the stock.
The listing is expected be the biggest since that of Chinese Internet giant Alibaba in New York in 2014, which raised $25 billion.
PSBC is China’s fifth-largest lender with 40,000 branches – more than any other bank in the country – and around 70 percent in rural areas.
Founded in 2007, it provides basic banking services to farmers and agricultural business owners, and it is the only financial institution present in some of the country’s most remote regions.
According to the latest figures, PSBC’s total assets reached 7.7 trillion yuan by March.
Its net profit rose 11pc year-onyear in the first quarter to 12.48 billion yuan. –