PSBC raises $7.4 bil­lion

The Myanmar Times - - International Business -

POSTAL Sav­ings Bank of China (PSBC) is set to raise US$7.4 bil­lion in its Hong Kong ini­tial pub­lic of­fer­ing, which is ex­pected to be the world’s big­gest flota­tion this year.

The list­ing is also poised to be the big­gest since Chi­nese in­ter­net gi­ant Alibaba floated in New York in 2014, rais­ing $25 bil­lion.

But the $7.4 bil­lion val­u­a­tion misses the hoped-for $8.1 bil­lion mark as an­a­lysts say de­mand for the stock is tepid.

PSBC will sell 12.1 bil­lion shares at HK$4.76 ($0.61) each when it floats on the Hong Kong ex­change on Septem­ber 28.

That comes in at the lower end of the bank’s orig­i­nal price range, which val­ued the shares be­tween HK$4.68 and HK$5.18.

An­a­lysts at­tribute the luke­warm in­ter­est to the re­cent flat per­for­mance of large Chi­nese fi­nan­cial firms on Hong Kong’s bourse.

“In the last year or so, most of these big fi­nan­cial firms on their de­but at best went up 5 per­cent, and a lot of them are still trad­ing un­der­wa­ter,” fi­nan­cial an­a­lyst Jack­son Wong told AFP.

The ma­jor­ity of the bank’s shares will go to cor­ner­stone in­vestors.

PSBC is China’s fifth-largest lender with 40,000 branches.

PSBC’s to­tal as­sets reached 7.7 tril­lion yuan ($1.15 tril­lion) in March. Its net profit rose 11pc year-on-year in the first quar­ter to 12.48 bil­lion yuan.

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