PSBC raises $7.4 billion
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.